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Texas AG Ken Paxton enters into settlement talks with whistleblowers over retaliation suit

Three of four former agency officials who sued Paxton have now entered settlement negotiations; a fourth has refused.

AUSTIN – Texas Attorney General Ken Paxton is in settlement negotiations with a group of whistleblowers who sued the state’s top lawyer for allegedly retaliating against them after they accused him of serious crimes.

In a joint filing last week, Paxton’s lawyers and three of four whistleblowers asked the Texas Supreme Court to put the high-profile case on hold as they hash out details. According to the filing, they “are actively engaged in settlement discussions, with mediation tentatively planned for February 1, 2023.”

A fourth whistleblower, James “Blake” Brickman, opposed the motion and is not engaged in settlement negotiations or mediation, according to a separate court filing.

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Any agreed sum would be paid with taxpayer funds. Already, the agency has paid private lawyers more than $463,000 to work on the case, in addition to state attorneys.

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The lawsuit is more than two years old. It was filed by four of Paxton’s former top aides who were fired after going to law enforcement with allegations that their boss committed bribery and abuse of office to help a campaign donor.

The FBI opened an investigation in late 2020. Paxton has denied wrongdoing. No federal charges have been filed.

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The question before the Texas Supreme Court is whether Paxton can face the lawsuit at all. His legal team has argued the state’s whistleblower laws do not apply to the attorney general or any other elected official in Texas. A lower appeals court rejected the argument in October 2021, and cleared the way for the lawsuit to proceed.

The joint filing on Jan. 26 asked the Texas Supreme Court “defer consideration of the petition for review pending the outcome of their ongoing settlement negotiations.” The whistleblowers who signed on are David Maxwell, J. Mark Penley and Ryan Vassar. Brickman’s attorney wrote the move “imposes further needless delay.”

The court has not yet weighed in.

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Paxton’s office did not immediately respond to a request for comment. Paxton, a Republican, easily won re-election to his third term as attorney general last year.