Ken Paxton Handed $6.6 Million Judgment in Whistleblower Case

Texas Attorney General Ken Paxton faces a $6.6 million judgment after a judge ruled his office illegally fired four whistleblowers who reported him to the FBI for alleged bribery and misconduct.

Key Insights

Travis County Judge Catherine Mauzy determined Paxton’s office violated the Texas Whistleblower Act by retaliating against four former aides who reported allegations of bribery to federal authorities.
The whistleblowers alleged Paxton abused his office to benefit Austin real estate developer Nate Paul.
Paxton has called the judgment “ridiculous” and plans to appeal the ruling, saying it is “not based on the facts or the law.”
The Texas Senate previously acquitted Paxton after impeachment proceedings initiated by the Texas House, which began when lawmakers refused to approve a $3.3 million settlement with the whistleblowers.

Judge Rules Against Texas Attorney General’s Office

Travis County District Court Judge Catherine Mauzy handed down a $6.6 million judgment against Texas Attorney General Ken Paxton’s office on Thursday, ruling that four former top aides were unlawfully fired after reporting alleged misconduct to federal authorities. The decision marks the latest development in a years-long legal battle that has involved multiple state institutions and threatened Paxton’s political career.

The court determined that the Attorney General’s office violated the Texas Whistleblower Act by terminating the employees after they reported what they believed were legal violations by Paxton to the FBI in 2020. Each plaintiff was awarded between $1.1 million and $2.1 million for lost wages, emotional pain, attorney’s fees, and other costs, with provisions for additional legal fees if they successfully defend against appeals.

Judge awards $6.6 million to whistleblowers who reported Texas Attorney General Ken Paxton to FBI https://t.co/J9S9fEmQJP

— WJTV 12 News (@WJTV) April 6, 2025

Allegations of Bribery and Misconduct

The case originated in 2020 when eight of Paxton’s top deputies reported him to federal authorities for his relationship with Nate Paul, an Austin real estate developer and campaign donor. The whistleblowers claimed Paxton abused his office by taking actions that benefited Paul, including ordering staff to intervene in legal matters involving the developer. Shortly after they reported their concerns to the FBI, Paxton allegedly fired the employees who would later become plaintiffs in the lawsuit.

House investigators later alleged Paxton received personal benefits from Paul, including renovations to his home and employment for a woman with whom Paxton had an extramarital affair. These allegations formed part of the basis for Paxton’s impeachment by the Texas House in 2023, though he was ultimately acquitted by the Texas Senate after a high-profile trial.

Settlement Attempts and Impeachment

Paxton initially attempted to settle the whistleblower lawsuit for $3.3 million in February 2023, but the Texas House refused to approve payment for the settlement. This refusal prompted House lawmakers to launch their own investigation into the allegations against Paxton, which culminated in his impeachment on 20 articles including bribery, obstruction of justice, and abuse of public trust.

In November 2024, Paxton’s legal strategy took a significant turn when he agreed not to contest the facts of the whistleblower case, effectively acknowledging the validity of their claims while avoiding potentially damaging depositions. This decision came after the Texas Supreme Court overturned a ruling that would have required Paxton to testify in the lawsuit.

Paxton’s Response and Next Steps

Following Judge Mauzy’s ruling, Paxton swiftly condemned the decision and announced his intention to appeal. In a statement, he characterized the judgment as “ridiculous” and “not based on the facts or the law.” Paxton also connected the case to political rivalries within the state, specifically mentioning Texas House Speaker Dade Phelan, a fellow Republican who supported the impeachment proceedings.

The US Justice Department has since declined to pursue its investigation into Paxton. Paxton has previously denied all allegations of wrongdoing and claimed the impeachment process was politically motivated and coordinated with the Biden administration. Despite the controversies, Paxton remains in office and continues to pursue conservative legal causes as Texas Attorney General.