Case: NetChoice LLC v. Paxton
1:21-cv-00840 | U.S. District Court for the Western District of Texas
Filed Date: Sept. 22, 2021
Case Ongoing
Clearinghouse coding complete
Case Summary
Two trade associations filed suit against Ken Paxton, the Attorney General of Texas, in the U.S. District Court for the Western District of Texas on September 22, 2021. Represented by private counsel, they challenged a Texas state law, H.B. 20, that placed restrictions on social media platforms with over 50 million active users in the United States within one calendar month. They targeted two sections: section 2, which implemented detailed disclosure and moderation requirements, and section 7, which made it unlawful for covered platforms to block, ban, or otherwise restrict users based on their “viewpoint.” Plaintiffs sought declaratory and injunctive relief to prevent the enforcement of H.B. 20’s sections 2 and 7. The case was assigned to Judge Robert Pitman.
Plaintiffs’ five claims were as follows.
- The law violated platforms’ First Amendment right to editorial judgment as it both compelled expression and prohibited platforms’ direct expression. In addition, they argued the burdensome disclosure and moderation requirements were designed to chill speech for certain disfavored platforms.
- The law should be voided for vagueness. Specifically, the statute's vaguely defined terms would permit arbitrary enforcement.
- Various claims under 42 U.S.C. § 1983. In violation of the Commerce Clause, the law allowed Texas to regulate and penalize out-of-state commerce as most of the platforms’ traffic occurred outside of Texas. Under the Full Faith and Credit and Due Process Clause, a state can regulate transactions only if there’s “significant contact” with the state, which Plaintiffs’ argued Texas lacked.
- The law should be preempted under the Supremacy Clause and 47 U.S.C. § 230 (which protects information content providers’ ability to moderate materials). Under section 230, Congress provided broad immunity to web-based service providers for all claims stemming from publication of third-party information.
- In violation of the Fourteenth Amendment’s Equal Protection Clause, the law specifically and arbitrarily targeted certain platforms.
Plaintiffs moved for a preliminary injunction on October 1, 2021. Plaintiffs reiterated their allegations from the complaint. In addition, they stated that platforms’ inability to moderate would cause irreparable harm through inundation with abusive, offensive, and unsafe materials, ranging from hate speech to foreign-state propaganda. As a result, users, platforms, and advertisers alike would be harmed experientially and financially.
Texas moved to dismiss the case on October 14, 2021, for lack of jurisdiction. They argued the plaintiffs lacked associational and organizational standing because plaintiffs were non-profit organizations and not the actual social media platforms targeted by H.B. 20. Further, they claimed that the platforms “attempted to shield themselves from the burdens of challenging a law they do not like by getting their lobbying groups to do it for them.”
The court both granted plaintiffs’ preliminary injunction and denied Texas’ motion to dismiss on December 1, 2021. As to the preliminary injunction, the court found that the plaintiffs had demonstrated there would be an irreparable harm as “[t]he loss of First Amendment freedoms, for even minimal periods of time, unquestionably constitutes irreparable injury.” In addition, the court determined a likelihood of success on the merits based on precedent upholding various groups' First Amendment right to editorial discretion. However, none of the cases cited explicitly applied to social media platforms. As to the motion to dismiss, the court determined the plaintiffs had established the three elements for associational standing: the association members had standing, the interests at stake matched the organization’s purpose, and the suit did not require participation of individual association members. 573 F.Supp.3d 1092.
Shortly thereafter, Texas filed an interlocutory appeal with the Fifth Circuit on December 6, 2021, appealing both the preliminary injunction and the denial of the motion to dismiss. On the same day, Texas also moved to stay the preliminary injunction in the district court, arguing that the order was overbroad as it was “not limited to the least intrusive means” and “could have been far more narrowly tailored” rather than halting enforcement of the law entirely. The following day, on December 7, 2021, plaintiffs filed a motion with the district court to stay the case pending the appeal.
On December 9, 2022, Texas’ motion to stay the preliminary injunction was denied. Plaintiffs’ motion to stay the case was only granted in part as the court declined to preemptively agree to lift the stay should the Fifth Circuit or Supreme Court alter the preliminary injunction. 2021 WL 7081434.
The Fifth Circuit summarily granted Texas’s motion to stay the District Court’s preliminary injunction pending appeal on May 11, 2022. 2022 WL 1537249. However, the U.S. Supreme Court summarily vacated the Fifth Circuit’s stay of the preliminary injunction May 31, 2022. 142 S.Ct. 1715.
The Fifth Circuit issued an opinion on September 16, 2022. They vacated the preliminary injunction and remanded the case for further proceedings consistent with the opinion. First, the court held that platforms’ act of censoring speech based on user’s viewpoints was not protected speech and thus did not trigger First Amendment protections. Second, it held that H.B. 20 prohibiting censorship of speech did not violate platforms’ First Amendment right to editorial discretion. Platforms were likened to “indispensable conduits for transporting information” rather than newspapers, where the right to editorial discretion originally derived. Third, it found that H.B. 20 advanced Texas’s important interest in protecting the free exchange of ideas and information. Finally, the court held that platforms were not entitled to pre-enforcement facial relief against H.B. 20’s disclosure and moderation requirements. The court found plaintiffs’ arguments that the requirements were burdensome unpersuasive as they were based on “a small number of applications.” 49 F.4th 439.
The plaintiffs subsequently moved to stay issuance of the mandate for the Fifth Circuit’s decision pending their forthcoming petition for writ of certiorari. The Fifth Circuit granted the stay on October 12, 2022.
On September 29, 2023, the Supreme Court granted certiorari in this case (NetChoice LLC v. Paxton) together with Moody v. NetChoice, the parallel challenge to Florida’s similar content-moderation law (S.B. 7072). The Eleventh Circuit had upheld a preliminary injunction against Florida’s statute, holding that social media platforms engage in First Amendment–protected editorial discretion. By contrast, the Fifth Circuit had vacated the injunction against Texas’s H.B. 20, concluding that platforms’ moderation decisions were not expressive conduct. The Court granted certiorari to resolve this direct circuit split and to consider both statutes together, given their overlapping structures, similar legislative purposes, and the shared First Amendment challenges raised by NetChoice and CCIA.
On July 1, 2024, the Supreme Court issued a single opinion resolving both Moody v. NetChoice (Florida) and NetChoice v. Paxton (Texas). The Court vacated the judgments of the Eleventh Circuit and the Fifth Circuit and remanded both cases for further proceedings. 603 U.S. 707, 144 S. Ct. 2383, 219 L. Ed. 2d 1075 (2024).
The Court held that neither lower court conducted the correct analysis for a facial First Amendment challenge. A proper facial inquiry requires courts to evaluate the full range of a law’s potential applications, determine which applications implicate protected expressive activity, and weigh unconstitutional applications against any plainly legitimate sweep. The Court found that both courts deviated from this framework: the Eleventh Circuit focused too narrowly on certain functions of large platforms, while the Fifth Circuit erred in concluding that platforms’ content-moderation choices are not expressive at all.
The Court clarified that social media platforms do engage in protected editorial discretion when they curate their main feeds and select, organize, remove, or deprioritize user content. At the same time, the Court declined to decide whether the challenged state laws are unconstitutional in full, emphasizing that the existing record was insufficient to resolve the statutes’ diverse applications across different platform functions and technologies.
Accordingly, the Court instructed the lower courts to reassess both statutes under the appropriate facial-challenge standards, considering which applications meaningfully burden platforms’ expressive activity and which may permissibly regulate non-expressive conduct.
Justice Barrett concurred, emphasizing that the breadth of the statutes and the varied functions of large platforms make facial challenges particularly difficult to resolve. She suggested that narrower, as-applied challenges may ultimately provide clearer answers about how specific platform features intersect with the First Amendment. Justice Jackson concurred in part, urging caution before courts apply rigid constitutional rules to technologies that continue to evolve. She emphasized that further factual development may be necessary to understand how the statutes operate across different platform functions.
Justice Thomas concurred in the judgment, questioning whether broad facial challenges of this kind are consistent with Article III requirements. He also suggested that common-carrier concepts may be relevant when evaluating certain aspects of platform regulation. Justice Alito, joined by Justices Thomas and Gorsuch, concurred in the judgment and agreed that remand was appropriate. He criticized the majority for analyzing expressive activity without tying that discussion to specific applications of the statutes and cautioned against uncritically extending traditional First Amendment doctrines to algorithmic or large-scale platform moderation.
On November 7, 2024, following the Supreme Court’s remand, the Fifth Circuit issued an opinion directing the district court to expand the factual record consistent with Moody. The court explained that the existing record was inadequate to evaluate the full scope of H.B. 20’s applications, including the range of actors covered, the variety of platform functions implicated, and the different ways in which content moderation occurs across services. The Fifth Circuit noted that the district court had previously limited discovery to thirty days based on plaintiffs’ assertion that no further factual development was necessary, a position the Supreme Court rejected in its remand. The court therefore returned the case to the district court to determine, in the first instance, how platforms’ algorithms, automated tools, and human review systems operate in organizing, ranking, or removing content, and to assess whether the statute’s individualized-explanation requirements impose constitutionally cognizable burdens across different contexts. The Fifth Circuit also instructed the district court to consider Texas’s remaining arguments, including associational standing and severability, which were not resolved in prior proceedings. 121 F.4th 494. 2024 U.S. App. LEXIS 28534.
As of November 30, 2025, the case remains ongoing.
Summary Authors
Eric Gripp (12/29/2022)
Augusto Colín (11/30/2025)
People
For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/60413417/parties/netchoice-llc-v-paxton/
Baasch, Ryan
Berg, Zachary (Texas)
Barber, Kathryn G. (Rhode Island)
Barthold, Corbin
Berry, Thomas Arthur
Barber, Kathryn G. (Rhode Island)
Bianchi, Gil Alan (Rhode Island)
Bolan, Kevin M. (Rhode Island)
Campbell, Jordan (Rhode Island)
Deyoe, Sonja L. (Rhode Island)
Goldstein, Ross S. (Rhode Island)
Gonzalez-Pagan, Omar (Rhode Island)
Gradowski, Kathryn T. (Rhode Island)
Hubbard, Kevin Love (Rhode Island)
Labinger, Lynette J. (Rhode Island)
Leatherbury, Thomas S. (Texas)
Lewis, A.D. Sean (Rhode Island)
Mayers, Brantley (Rhode Island)
Nakasian, Stacey P. (Rhode Island)
Olshan, Eric G. (Rhode Island)
Romero, Amy Retsinas (Rhode Island)
Runkle, Patrick Raymond (Rhode Island)
Smith, Nicole M. (Rhode Island)
Documents in the Clearinghouse
Docket
See docket on RECAP: https://www.courtlistener.com/docket/60413417/netchoice-llc-v-paxton/
Last updated March 28, 2026, 5:15 a.m.
Case Details
State / Territory:
Case Type(s):
Key Dates
Filing Date: Sept. 22, 2021
Case Ongoing: Yes
Plaintiffs
Plaintiff Description:
Two non-profit trade associations representing social media platforms.
Plaintiff Type(s):
Non-profit NON-religious organization
Public Interest Lawyer: No
Filed Pro Se: No
Class Action Sought: No
Class Action Outcome: Not sought
Defendants
State
Attorney General of Texas
Defendant Type(s):
Case Details
Causes of Action:
All Writs Act, 28 U.S.C. § 1651
Declaratory Judgment Act, 28 U.S.C. § 2201
Ex parte Young (federal or state officials)
Constitutional Clause(s):
Other Dockets:
Western District of Texas 1:21-cv-00840
U.S. Court of Appeals for the Fifth Circuit 21-51178
Supreme Court of the United States 21A720
District of Rhode Island 1:26-mc-00007
Available Documents:
Injunctive (or Injunctive-like) Relief
Outcome
Prevailing Party: None Yet / None
Relief Granted:
Preliminary injunction / Temp. restraining order
Source of Relief:
Content of Injunction:
Issues
General/Misc.:
Case Summary of NetChoice LLC v. Paxton, Civil Rights Litig. Clearinghouse, http://www.dev.clearinghouse.net/case/43568/ (last updated 11/30/2025).