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Texas Attorney General Paxton Gets SEC Fraud Suit Tossed

  • Judge finds he had no legal obligation on investor disclosure
  • Agency given chance to submit additional facts to revive case
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Texas Attorney General Ken Paxton convinced a judge he shouldn’t have to face a U.S. Securities and Exchange Commission fraud lawsuit over his solicitation of investors for a friends’ technology company.

U.S. District Judge Amos L. Mazzant III in Sherman, Texas, on Friday ordered conditional dismissal of the SEC’s lawsuit, saying the agency didn’t allege sufficient facts to support its claims. The judge gave the SEC 14 days to submit “additional facts” before he decides whether to order final dismissal.