Texas Agrees to $6.6M Payout After Paxton Ends Whistleblower Appeal
The state of Texas is on the hook for $6.6 million after Attorney General Ken Paxton dropped his appeal in a whistleblower lawsuit brought by four of his former top aides. These employees claim they were wrongfully terminated after reporting Paxton to federal authorities in 2020 for alleged corruption.
The lawsuit’s resolution came on Wednesday when Paxton officially ended his appeal of an April court ruling in favor of the whistleblowers. However, the Legislature must still authorize the payment of the judgment. Lawmakers may do so in an upcoming special session or wait until the next regular session. If the state delays payment until 2027, attorneys representing the whistleblowers say it could rack up an additional $1.2 million in interest.
“Ken Paxton consented to a judgment in trial court to avoid testifying under oath about his misconduct, yet he delayed justice by filing an appeal that kept the Legislature from resolving the issue earlier,” said attorneys TJ Turner and Tom Nesbitt in a joint statement.
Despite dropping the appeal, a spokesperson for the Office of the Attorney General maintained that the case was based on “baseless claims by rogue employees” and characterized the ruling as a “bogus judgment.”
Also Read – Texas Family Faces $1,400 Bill for Measles Vaccine Needed to Protect Boy
Paxton, who is now mounting a primary challenge against U.S. Senator John Cornyn, continues to face scrutiny over his conduct during his time as attorney general. The whistleblower case stems from a 2020 complaint when eight senior staff members in his office reported him to the FBI. They alleged that Paxton misused his position to aid Austin developer Nate Paul, including launching investigations on Paul’s behalf.
While some of the employees later left voluntarily, four were terminated and filed a lawsuit under the Texas Whistleblower Act. Paxton offered to settle the case in early 2023 for $3.3 million, but his request for the Legislature to cover the cost triggered an investigation by the Texas House of Representatives.
That investigation culminated in Paxton’s impeachment on corruption and bribery charges in 2023, though he was acquitted by the Texas Senate after a highly publicized trial. The whistleblowers played a key role in that case, providing testimony and evidence.
Although Paxton said he would no longer dispute the facts in the whistleblower lawsuit, he appealed an April 2025 decision by Travis County District Judge Catherine Mauzy, who found his office in violation of the whistleblower law. Mauzy ordered compensation for the four plaintiffs, including lost wages, emotional distress damages, attorney’s fees, and future legal costs if the ruling was upheld through further appeals.
Paxton labeled the ruling “ridiculous” and claimed it wasn’t supported by the facts or law. His decision to abandon the appeal marks one of the final legal chapters in a years-long saga involving allegations of abuse of power.
Also Read – More Parents Sue to Block Texas’ Ten Commandments Rule in Public Schools
As he campaigns for the Senate, Paxton’s critics, including Cornyn, continue to highlight these controversies. However, polling suggests that Paxton remains a strong favorite among Republican voters despite the ethical concerns.
A spokesperson for the agency reiterated that Paxton remains committed to his priorities: border security, election integrity, and opposing progressive policies. “No matter what liberal judges or political opponents try, General Paxton remains focused on defending Texas and fighting radical agendas,” the spokesperson said.
