On August 15, 2025, U.S. District Judge Sparkle L. Sooknanan temporarily blocked the Federal Trade Commission from enforcing a civil investigative demand against Media Matters. She found that Media Matters was likely to prove at this preliminary stage that the demand retaliated against constitutionally protected speech. The ruling was not a final judgment after trial, and the case later ended after the FTC withdrew the demand and both courts dismissed the matter in May 2026.
What did the judge decide?
Judge Sooknanan granted Media Matters a preliminary injunction on August 15, 2025. That means the court barred enforcement of the FTC’s demand while the case proceeded; it did not make a final finding of liability or decide every issue after a trial. The district court concluded that Media Matters was likely to succeed on its claim that the demand was issued in retaliation for protected speech. Read the district court opinion.
The judge wrote: “It should alarm all Americans when the Government retaliates against individuals or organizations for engaging in constitutionally protected public debate. And that alarm should ring even louder when the Government retaliates against those engaged in newsgathering and reporting.” The statement described the court’s concern about the alleged retaliation and its preliminary assessment—not a final adjudication that retaliation had been proven.
Why was the FTC investigating Media Matters?
The FTC issued Media Matters a civil investigative demand, a compulsory request for information used in an investigation. The agency was examining whether entities had engaged in anticompetitive or collusive conduct, including coordinating advertiser boycotts, to reduce advertising on media outlets, platforms, or publishers.
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Media Matters said the demand was retaliation for its reporting about advertisements appearing near antisemitic and other offensive content on X. That retaliatory-purpose claim was central to the lawsuit. At the preliminary-injunction stage, the district court viewed the reporting as protected speech and found Media Matters likely to succeed on its claim; the opinion did not turn that preliminary assessment into a final trial finding. TechCrunch’s contemporaneous report also summarized the dispute.
What did the appeals court do?
The FTC appealed the preliminary injunction and asked the D.C. Circuit to pause it. In October 2025, the appeals court denied that request, concluding that the FTC had not made the strong showing of likely success required for a stay at that point.
The stay ruling was not a final decision on the merits of the appeal. The D.C. Circuit emphasized that its assessment was preliminary, depended in part on deferential review of the district court’s factfinding, and involved what it described as a presumably unique fact pattern. The district court had decided whether preliminary relief was warranted on the record before it; the appeals court decided whether to suspend that relief while the appeal proceeded. Read the D.C. Circuit order.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Is the FTC investigation still going on?
No. The FTC’s June 2026 litigation status report says the agency withdrew the civil investigative demand on April 20, 2026, and that the district court and court of appeals dismissed the matter on May 4, 2026. See the FTC’s June 2026 report.
Media Matters described the resolution as a binding settlement and said the FTC agreed not to issue a substantially similar demand and stated in writing that Media Matters was not an investigation target. That description is Media Matters’ account of the resolution. Read Media Matters’ statement.
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