Media Matters Reportedly Considers Closing Up Shop Amid Fraud, Defamation Suits

Media Matters, a left-wing media watchdog, is reportedly facing an existential crisis as it drowns in government investigations, legal expenses from a defamation case and loss of donors, according to The New York Times.

Media Matters’s future looks so dire since layoffs were reported in May that some involved with the organization have contemplated declaring bankruptcy or shutting down entirely in recent months, the NYT reported Friday, citing internal documents and 11 sources familiar with the situation. The Democrat-aligned group purports to monitor and combat “conservative misinformation in the U.S. media” and is under investigation by the Trump administration’s Federal Trade Commission (FTC) over allegations that it illegally colluded with advertisers to stifle conservative viewpoints.

The group, which has taken money from left-wing philanthropists such as George Soros, is reportedly bleeding donors and funders who fear some form of retaliation as it increasingly comes under fire, The New York Times reported. Media Matters also lost around $2 million fending off investigations by Republican state attorneys general over claims that it manipulated data to smear Elon Musk’s X, according to the outlet.

The organization’s legal expenses from battling conservatives have reportedly topped $15 million over the past 20 months, according to the NYT. Declining morale and disagreements among staff have reportedly added to the difficulties.