A federal judge issued a scathing takedown on Friday of President Donald Trump's Federal Trade Commission, shutting down their investigation of the liberal watchdog Media Matters for America.

According to The New York Times, U.S. District Judge Sparkle L. Sooknanan, an appointee of former President Joe Biden, "granted an injunction on Friday blocking the Federal Trade Commission’s investigation of Media Matters, saying the inquiry violated the free speech rights of the liberal watchdog group, which had published research critical of Elon Musk and his social media platform, X."

Media Matters CEO Angelo Carusone declared victory following the ruling.

“The court’s ruling demonstrates the importance of fighting over folding, which far too many are doing when confronted with intimidation from the Trump administration,” said Carusone. “We will continue to stand up and fight for the First Amendment rights that protect every American.”

The FTC, under Trump-appointed chairman Andrew Ferguson, launched the investigation after Media Matters published research showing that X frequently places ads next to antisemitic and pro-Nazi content, prompting a number of advertisers to withdraw from the site. The FTC suggested that the advertiser boycott could represent illegal collusion to deprive X of advertising revenue. Media Matters maintained that it, as well as the withdrawing advertisers, have a First Amendment right to report on and refuse to associate with the content on Musk's platform.

Judge Sooknanan agreed with Media Matters, saying, “This case presents a straightforward First Amendment violation. It should alarm all Americans when the government retaliates against individuals or organizations for engaging in constitutionally protected public debate.”

All of this comes as Media Matters, which has fact-checked the GOP and highlighted right-wing extremism since its founding in 2004, has found itself in critical financial distress as a result of the FTC investigation and countersuit, struggling to raise cash from donors and faced with the prospect of layoffs or potentially even shuttering its doors altogether.