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FEC sues Club for Growth

The New York Times reports: The Federal Election Commission filed suit Monday against the Club for Growth, a well-funded Republican group, in an effort to force the organization to comply with limits on political contributions.

The suit is the first major enforcement case to involve a "527 committee," the independent political organizations that both Republicans and Democrats used to raise and spend hundreds of millions of dollars in the 2004 races. Commission officials describe it as a test case that could have a major impact on how future elections are financed. ...

The suit alleges that the organization failed to properly register with the commission as a political committee, which would subject the group to contribution limits and other regulations, and that it raised millions in excessive contributions in recent years. Officials at the club said they had done nothing improper.

The case stems from a complaint filed against the group by the Democratic Congressional Campaign Committee in connection with a television advertisement broadcast last year. The commission voted to file the suit Monday after talks between the two parties failed to reach an out-of-court agreement, according to the F.E.C. -- F.E.C. Sues Republican Group Over Political Contributions - New York Times