Years-long legal battle ends as Paxton drops appeal; Legislature must still authorize payout
The state of Texas will pay $6.6 million to four former top aides of Attorney General Ken Paxton after a judge ruled they were illegally fired for reporting their boss to the FBI. The long-running legal drama came to a close this week when Paxton quietly dropped his appeal of the April judgment, ending a case that has shadowed much of his political career.
The whistleblowers—former high-ranking officials in the Office of the Attorney General—were among eight employees who in 2020 accused Paxton of abusing his power to benefit a political donor. Four of them were subsequently terminated and later sued under the Texas Whistleblower Act.
In April, Travis County District Judge Catherine Mauzy ruled in favor of the plaintiffs, finding they were wrongfully fired and awarding a combined $6.6 million for back pay, emotional distress, attorney's fees, and other damages. Paxton initially agreed not to contest the facts of the case, but still appealed the ruling, delaying the judgment and preventing the Legislature from funding the settlement during the most recent session.
Now that the appeal has been dropped, the state remains on the hook—but only if lawmakers agree to appropriate the money in a special session or the 2025 regular session. If not paid by 2027, the judgment will accrue an estimated $1.2 million in interest.
“To avoid answering questions under oath about his corruption, Ken Paxton surrendered to the whistleblowers in the trial court and consented to judgment,” said attorneys TJ Turner and Tom Nesbitt, who represent two of the plaintiffs. “But he appealed the judgment anyway, preventing the legislature from funding it during the recent session.”
A spokesperson for the attorney general’s office said Paxton had "closed the case" but stood by his belief that the lawsuit was a “bogus judgment in support of baseless claims by rogue employees.”
Background: A Legal and Political Firestorm
The case dates back to 2020, when eight senior staffers in Paxton’s office reported him to the FBI for alleged abuse of power. They claimed Paxton used his position to help Austin real estate investor Nate Paul, who had donated to Paxton’s campaign. Their accusations included improperly hiring an outside lawyer to investigate Paul’s rivals.
While some of the whistleblowers resigned, four were fired and filed a lawsuit in November 2020. In early 2023, Paxton offered a $3.3 million settlement, asking the Legislature to pay. That request backfired, prompting the Texas House to open its own investigation into Paxton’s conduct.
By mid-2023, the House had voted to impeach Paxton on charges of bribery and abuse of office—largely based on the whistleblowers’ testimony. But in a dramatic Senate trial, he was acquitted of all charges, keeping his job and returning to office emboldened.
The whistleblower case, however, continued winding its way through the courts. Paxton refused to be deposed and successfully appealed a lower court order requiring him to testify under oath. In April 2025, Judge Mauzy ruled against him.
Though Paxton maintained the ruling was “ridiculous” and “not based on facts or law,” his decision to drop the appeal marks the official end of the civil case.
Political Implications
Paxton, a polarizing figure in Texas politics, is currently running for U.S. Senate in the Republican primary against incumbent Sen. John Cornyn. Despite years of legal scrutiny and ethics complaints, Paxton remains popular with conservative voters. Recent polls show him leading Cornyn by a wide margin.
Cornyn has attempted to make ethics and integrity central to his campaign, repeatedly referencing Paxton’s legal baggage. But so far, it hasn’t appeared to hurt Paxton with the Republican base.
Paxton’s office, meanwhile, framed the resolution of the case as a chance to refocus on key conservative priorities.
“No matter what the far left and liberal judges do to try and stop him, Attorney General Paxton will continue to focus on important issues facing the people of Texas and direct resources to enforcing the law, stopping the radical transgender movement, securing our elections, and protecting the border,” a spokesperson said in a statement.
Next Steps
The financial responsibility now lies with the Texas Legislature, which must decide when—and whether—to authorize the $6.6 million payment. Lawmakers failed to do so during the most recent session, in part because the case was still under appeal.
If the Legislature fails to act again, the judgment could remain unpaid for years, adding more than $1 million in interest. For the whistleblowers, it would be yet another delay in a case they say has already cost them their careers and reputations.
