Texas AG Ken Paxton Facing $6.6 Million Penalty in Whistleblower Case

Texas Attorney General Ken Paxton faces a $6.6 million judgment in a whistleblower lawsuit that highlights allegations of bribery and retaliation.

Quick Takes

A district court awarded $6.6 million to four whistleblowers against Ken Paxton.
The whistleblowers were fired after reporting Paxton to the FBI for bribery, and they alleged their firings were retaliatory.
The court found violations of the Texas Whistleblower Act.
Paxton plans to appeal the ruling, calling it “ridiculous.”

Court Award and Allegations

A district court judge ordered Texas Attorney General Ken Paxton to pay $6.6 million to four whistleblowers. The judgment stems from a lawsuit brought by the whistleblowers claiming they were fired from their senior aide positions as retaliation for reporting Paxton’s office to the FBI on allegations of bribery. Judge Catherine Mauzy ruled that the plaintiffs successfully proved liability, damages, and attorney’s fees. Notably, the court’s decision found that the Attorney General’s office violated the Texas Whistleblower Act by firing the whistleblowers in retaliation for their reports.

“Because the Office of the Attorney General violated the Texas Whistleblower Act by firing and otherwise retaliating against the plaintiff for in good faith reporting violations of law by Ken Paxton and OAG, the court hereby renders judgment for plaintiffs,” Mauzy said.

Paxton has denied the allegations of accepting bribes or misusing his office. In a statement provided to The Texas Tribune, he also called the latest decision “a ridiculous judgment that is not based on the facts or the law” and stated his intention to appeal the ruling.

Attorney General Ken Paxton’s former aides win $6.6 million in whistleblower casehttps://t.co/pm8e6gjadC

— ABC 7 Amarillo (@ABC7Amarillo) April 5, 2025

Background and Legal Developments

The allegations against Paxton involve his association with real estate developer Nate Paul and an alleged extramarital affair. Back in 2020, Paxton’s accusers said that through his office, he accepted bribes from Paul, who had employed a woman Paxton was allegedly having an affair with.

The plaintiffs in the whistleblower lawsuit were awarded between $1.1 and $2.1 million each for lost wages, emotional distress, attorney’s fees, and other costs. Paxton previously attempted to settle for $3.3 million back in 2023, but the Texas House declined, leading to additional inquiries and his impeachment. However, the state Senate eventually acquitted Paxton.

Future Implications

The judgment allows for more attorney’s fees if the plaintiffs successfully defend or prosecute appeals. Paxton’s plans to appeal the ruling suggest continued legal battles. As these developments unfold, the eyes of the state and nation remain fixed on Texas politics and how this judgment could impact the landscape.