A federal judge has again thrown out securities fraud charges against Texas Attorney General Ken Paxton, effectively ending one of two legal battles that have dogged Paxton for close to a year.
U.S. District Judge Amos Mazzant on Thursday dismissed the case “with prejudice,” making a final judgment on the charges that had been brought by the U.S. Securities and Exchange Commission. Mazzant first threw out the charges last year but gave the SEC the opportunity to file amended allegations — which it did in October, keeping the case alive.
In its amended allegations, the SEC had sought to bolster its argument that Paxton had a legal duty to disclose to the investors that he was making a commission. Mazzant said Thursday the SEC had still not been persuasive enough.
“This case has not changed since the Court conditionally dismissed the Commission’s Original Complaint,” the judge wrote. “The primary deficiency was, and remains, that Paxton had no plausible legal duty to disclose his compensation arrangement with investors.”
See here, here, and here for the background. After the charges were dismissed the first time, I was skeptical of the second effort, but you never know what might happen. So much for that. This is a win for Paxton, but the big game begins May 1, in Collin County or somewhere else. That’s what will really matter. The Press has more.
UPDATE: RG Ratcliffe’s overview of the Paxton saga is well worth your time.