On Monday, a nonprofit campaign finance watchdog, the Campaign Legal Center, sued the Federal Elections Commission FEC. The watchdog alleges the FEC wrongly dismissed complaints about a political action committee PAC running attack ads against Sheehy without filing required reports.
The Campaign Legal Center, based in Washington D.C., argues that the FEC’s 4-2 decision to dismiss complaints against the Last Best Place PAC was unlawful. They want the court to overturn this dismissal.
Megan McAllen, the director of campaign finance litigation for the Campaign Legal Center, said voters deserve to know the sources of campaign money and how it’s spent. She criticized the FEC for failing to uphold transparency in campaign finance law.
The complaints focus on ads from the Last Best Place PAC that used the nickname Shady Sheehy, which has been used by Sheehy’s opponents. The ads highlighted a Paycheck Protection Program loan Sheehy took for his business and criticized his handling of it.
In February, the Campaign Legal Center alleged that the PAC did not file required reports for these ads. The PAC, which started running ads in September 2023, was accused of failing to report significant spending on anti-Sheehy ads.
The FEC’s Office of General Counsel found that the PAC’s ads should have led to independent expenditure reports but the commission dismissed the complaints in July. The majority of commissioners argued that the ads did not explicitly urge viewers to vote for or against Sheehy.
Two commissioners disagreed, arguing that the ads did constitute express advocacy against Sheehy. They felt the dismissal misinterpreted regulations on ad timing and content.
The Campaign Legal Center’s lawsuit claims the FEC’s decision was biased and could set a harmful precedent for campaign finance transparency. They are asking the court to reverse the FEC’s dismissal and for attorneys’ fees if they win.
The Last Best Place PAC has reported raising and spending substantial funds, including independent expenditures, since last year. The PAC has filed several reports since April and continues to spend on the Montana U.S. Senate race.
McAllen hopes the lawsuit will reinforce enforcement of campaign finance laws and ensure full transparency.
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