Court Rules Ken Paxton Owes $6.6 Million in Whistleblower Case

Texas Attorney General Ken Paxton must pay $6.6 million to four whistleblowers who were fired after reporting him to the FBI, according to a district court ruling that Paxton vows to appeal.

Key Takeaways

Judge Catherine Mauzy ruled that Paxton’s office violated the Texas Whistleblower Act by retaliating against four former employees who reported alleged legal violations.
The whistleblowers claimed Paxton misused his office to benefit Austin real estate developer Nate Paul, allegations that eventually led to Paxton’s impeachment and acquittal in 2023.
Each plaintiff was awarded between $1.1 and $2.1 million for lost wages, emotional pain, attorney’s fees, and other costs.
Paxton has called the judgment “ridiculous” and plans to appeal, while his attorneys maintain the ruling is “not based on the facts or the law.”
Despite the whistleblower allegations, Paxton was acquitted by the Texas Senate following his impeachment, and the US Justice Department declined to pursue its investigation into him.

Court Rules Against Texas Attorney General

Travis County Judge Catherine Mauzy delivered a blow to Texas Attorney General Ken Paxton on April 4, 2025, awarding $6.6 million to four former employees who claimed they were fired after reporting Paxton’s alleged misconduct to federal authorities. The judgment found that Paxton’s office violated the Texas Whistleblower Act when it terminated the employees after they reported alleged violations of law to the FBI in 2020.

The whistleblowers’ allegations centered on Paxton’s relationship with Nate Paul, an Austin-based real estate developer. They claimed Paxton abused his office by accepting bribes from Paul, including home renovations and arranging employment for a woman with whom Paxton allegedly had an extramarital affair. The court determined that the plaintiffs had proven their case regarding liability, damages, and attorney’s fees against the Attorney General’s office.

Judge awards $6.6 million to whistleblowers who reported Texas Attorney General Ken Paxton to FBI https://t.co/rVGHLPIAk2

— WHLT 22 Hattiesburg (@WHLT22) April 6, 2025

Whistleblower Allegations and Retaliation

The case originated in 2020 when eight former senior aides in the Attorney General’s office reported Paxton to federal authorities. According to court documents, these high-ranking officials met with FBI agents to discuss concerns about Paxton’s behavior. Shortly after this meeting, Paxton fired the whistleblowers, which the court ultimately determined was retaliatory action in violation of state law.

The court found that the whistleblowers acted in “good faith” when reporting their concerns. Each plaintiff was awarded between $1.1 and $2.1 million for various damages, including lost wages, emotional pain, attorney’s fees, and other costs. The court also allowed for additional attorney’s fees if the plaintiffs successfully defend against appeals.

Political Fallout and Impeachment

The whistleblower allegations triggered a series of political and legal battles for Paxton. In 2023, he attempted to settle the lawsuit for $3.3 million, but the Texas House refused to approve the payment and instead launched its own investigation. This led to Paxton’s impeachment by the Texas House of Representatives on 20 articles of impeachment, including allegations of bribery and abuse of office.

Despite the House’s action, the Texas Senate subsequently acquitted Paxton of all charges in September 2023. The Department of Justice also declined to prosecute Paxton, and he ultimately accused House members of colluding with former President Joe Biden’s administration in what he described as a politically motivated attack.

Paxton’s Response and Appeal Plans

Following the court’s ruling, Paxton quickly announced his intention to appeal, calling the judgment “ridiculous” and asserting it was not grounded in facts or law. In a statement, Paxton specifically blamed Texas House Speaker Dade Phelan, one of his political rivals within the Republican Party, for the situation.

In November 2024, Paxton scored a partial legal victory when the Texas Supreme Court overturned a ruling that would have required him to testify in the lawsuit. The high court determined his testimony was not necessary for resolving factual disputes in the case. This decision came after Paxton had agreed not to contest the facts of the whistleblower case, a move that allowed him to avoid being deposed under oath about the allegations.