Media Matters for America—the far-left group known for targeting conservatives—may be on the brink of collapse due to mounting legal fees and donor fatigue, according to a report from The New York Times.
The organization has reportedly burned through over $15 million in legal costs in recent months while battling lawsuits from Elon Musk, the Federal Trade Commission, and multiple state attorneys general.
The lawsuits have forced Media Matters to cut staff, scramble for cash, and consider shutting down entirely as a “last resort.” Internal documents and sources confirmed the group is facing declining morale, infighting, and growing concerns over its future.
Among the most high-profile legal battles is a lawsuit filed by Elon Musk’s X Corp in federal court last November.
Media Matters is accused of manipulating X’s algorithm by creating test accounts that followed specific users and repeatedly refreshed timelines to generate misleading screenshots—placing ads from companies like Apple and IBM next to extremist content to falsely smear the platform.
X: Media Matters Acted ‘Knowingly and Maliciously’
Musk’s legal team argues the group “knowingly and maliciously” misrepresented the user experience on X to damage its reputation.
Despite multiple attempts by Media Matters to settle the lawsuit, the two sides remain far apart, and settlement talks have failed.
X has also filed additional lawsuits against Media Matters in Ireland and Singapore, further draining the group’s resources.
Cash Dwindling, Donors Wary
With debt piling up, Media Matters is reported to owe more than $4 million to Elias Law Group, a firm founded by Clinton operative Marc Elias. The firm offered to reduce the debt in exchange for a payment plan—but warned it would seek the full amount if no deal was reached.
That sparked outrage from longtime fundraiser Mary Pat Bonner, who blasted the firm in an email:
“You must be kidding!! This is how you treat people who have been clients for 16 years and are friends?”
Public Denials, Private Panic
Media Matters president Angelo Carusone publicly insists the group is not shutting down and remains committed to fighting in court.
“We understand that this battle is larger than us,” he said in a statement.
But insiders told the Times that major donors raised the possibility of shutting down during a Connecticut fundraising meeting, and staff morale is cratering.
Long History of Targeting Conservatives
Founded by David Brock in 2003, Media Matters spent the last two decades organizing advertiser boycotts and launching smear campaigns against Fox News, talk radio hosts, and conservative influencers.
Between 2003 and 2023, the group raised nearly $250 million—much of it from dark money sources. Donors include George Soros’ network, clothing mogul Susie Tompkins Buell, and hedge fund manager Stephen F. Mandel Jr.
