Texas Attorney General Ken "I Fought the Law" Paxton can breathe a little easier Thursday, thanks to a federal judge's dismissal of a lawsuit filed against him by the U.S. Securities and Exchange Commission.
The Austin American-Statesman reports that "U.S. District Judge Amos Mazzant III dismissed the SEC lawsuit with prejudice, meaning the federal agency cannot refile it. Last October, the judge tossed out a similar lawsuit, saying the federal regulators had failed to state allegations that were supported by securities law."
The SEC had accused Paxton of soliciting investors for McKinney-based Servergy Inc. without disclosing that he received commissions from the company. Paxton has argued — and the judge agreed — that he was not legally required to disclose his financial interest.
In a written statement to the American-Statesman, Paxton said, “I have maintained all along this whole saga is a political witch hunt. Today’s ruling to dismiss the charges with prejudice confirms that these charges were baseless when the SEC initially brought them and they were without merit when the SEC refiled them. Someone needs to hold the SEC accountable for this travesty.”
Paxton still faces a state criminal action based on the Servergy solicitations. A trial is set for May 1.
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