EPIC City blocked again, $286.5 million secured from Purdue Pharma, illicit massage businesses shut down in Austin, a drone company with CCP ties investigated, and a statewide ISD probe launched over the Ten Commandments and school prayer — here is what came out of the Texas Attorney General’s office this week.
Paxton Blocks Court Order That Would Have Forced Texas Agency to Aid EPIC City
Attorney General Paxton appealed to the Fifteenth Court of Appeals and secured a stay of a temporary injunction that would have compelled the Texas Workforce Commission to approve certain fair housing documents for the EPIC City development — a project under active federal investigation.
The underlying lawsuit was filed by EPIC City developers seeking to force the TWC to act on those documents despite the ongoing federal probe. Paxton’s appeal suspended the injunction, meaning the TWC will not be forced to take any action while the case proceeds.
“EPIC City developers have sought out any possible way to evade the law and further their development scheme,” said Paxton. “I will be relentless in ensuring that any attempt by EPIC City to move its development forward in violation of the law is stopped.”
Paxton Sues Municipal Utility District in EPIC City Takeover Scheme
In a related action, Paxton filed a lawsuit against Double R Municipal Utility District No. 2A of Hunt and Collin Counties and its purported officers for violating the Texas Open Meetings Act — as part of what the OAG describes as a scheme to secretly take over a political subdivision to facilitate the East Plano Islamic Center (EPIC) City development.
According to the OAG, on September 12, 2025, the Double R MUD board held a meeting in a remote field where it terminated and replaced legal counsel, accepted the resignation of the entire board, appointed a completely new board, and attempted to annex more than 400 acres of land tied to the EPIC City development. The meeting notice allegedly failed to provide required public access information and misrepresented the scope of the actions being considered.
Paxton’s lawsuit seeks to void the attempted annexation, declare the defendants’ actions unlawful under TOMA, and secure injunctive relief against future violations. This follows a prior Temporary Injunction Paxton secured that declared nearly all actions taken by the unqualified directors on or after September 12, 2025 null and void.
“EPIC City developers have tried to evade the law in any way possible, but I will fight to uncover and stop any illegal scheme that seeks to advance their project,” said Paxton.
Paxton Secures $286.5 Million for Texas in Purdue Pharma Settlement — Total Opioid Recovery Surpasses $3 Billion
Paxton announced that a $7.4 billion settlement with Purdue Pharma, Inc. and its owners, the Sackler family, has become legally effective — with Texas expected to receive $286.5 million. The announcement brings Paxton’s total secured opioid settlement funds for Texas to more than $3 billion.
Purdue filed bankruptcy in September 2019 following a coalition investigation and a 2018 lawsuit filed by Paxton. The settlement requires the Sacklers to pay more than $1.5 billion immediately, followed by approximately $500 million in May 2027, $500 million in May 2028, and $400 million in May 2029. Purdue is separately paying approximately $900 million today.
The settlement permanently bars the Sacklers from selling opioids in the United States. Purdue’s manufacturing operations will transfer to a new entity — Knoa Pharma LLC — overseen by a board with no prior connection to Purdue, with restrictions on opioid marketing and an independent monitor. The settlement also requires Purdue and the Sacklers to make public more than 30 million documents related to their opioid business over the next 15 years.
“For years, I have fought relentlessly to ensure Big Pharma pays for its role in causing the opioid crisis,” said Paxton. “While no amount of money can undo the devastation caused by the opioid crisis, these funds will help those affected to recover and rebuild.”
Paxton Investigates Drone Company for Alleged CCP Surveillance Ties
Paxton opened an investigation into Drone Nerds, LLC over its connection to Anzu Robotics, LLC — a company the OAG describes as a known affiliate of the Chinese Communist Party. In February 2026, Paxton sued Anzu directly over deceptive practices in Texas.
According to the OAG, in November 2025 XTI Aerospace acquired both Drone Nerds and Anzu, and evidence suggests Anzu may be using Drone Nerds as a distribution channel to continue selling drones in Texas while evading restrictions on CCP-linked companies. Despite these concerns, Drone Nerds allegedly represents to consumers that Anzu’s Raptor drone is “headquartered and operated within the United States.”
Paxton issued a Civil Investigative Demand to Drone Nerds to determine the extent of the company’s role in misleading Texas consumers in violation of the Texas Deceptive Trade Practices Act.
“Under my watch, the Chinese Communist Party will have no influence in Texas,” said Paxton. “I will thoroughly investigate any potential threat to the privacy and security of Texans and hold any company that enables CCP surveillance accountable.”
Paxton Shuts Down Austin Illicit Massage Business — Property Closed for One Year
On May 1, Paxton secured a court order requiring the closure of a property at 13233 Pond Springs Road, Suite 322, in Austin for one year after the property owner repeatedly allowed illicit massage businesses to operate there.
A nuisance abatement suit was first filed at the property in February 2024, resulting in the closure of Essence Massage. Another business opened shortly after, and illicit activity continued. After the OAG’s Human Trafficking Unit found evidence of continued illicit sexual activity at the business, Paxton filed a second suit. Following a two-day trial, the court ruled in favor of the State — closing the property for one year followed by a five-year ban on leasing it to massage businesses.
An estimated 2,500 illicit massage businesses operate in Texas, according to the OAG, functioning as fronts for human trafficking and commercial sex under the guise of legitimate massage services.
“I am committed to ending human trafficking in Texas and closing illicit massage businesses throughout the state,” said Paxton. “Many of these businesses operate as nothing more than fronts for human trafficking, and it’s imperative that they are shut down and that the perpetrators are brought to justice.”
Paxton Launches Statewide Investigation into Texas ISDs Over Ten Commandments and School Prayer
Paxton announced a statewide investigation into dozens of Texas Independent School Districts to ensure compliance with two laws passed during the 89th Legislative Session — Senate Bill 10 and Senate Bill 11.
SB 10, effective September 1, 2025, requires public schools to display donated copies of the Ten Commandments that meet specific specifications. SB 11 requires each ISD board of trustees to vote on whether to implement a designated time for prayer and Bible or religious text reading in schools.
As part of the investigation, the OAG has demanded that ISDs provide proof of a board vote on SB 11 implementation and documentation regarding Ten Commandments display or lack thereof under SB 10.
The 29 ISDs under investigation include Alamo Heights, North East, Austin, Cypress-Fairbanks, Lackland, Lake Travis, Fort Bend, Houston, Dripping Springs, Plano, Northside, Conroe, Galveston, Dallas, Fort Worth, Lubbock, Wichita Falls, McAllen, Amarillo, El Paso, Corpus Christi, United, Texarkana, Victoria, Waco, Abilene, San Angelo, Brownsville, and Beaumont.
“I will always fight for students’ fundamental right to pray in our schools and work to ensure that Texas kids are able to learn from the Ten Commandments daily,” said Paxton. “I will never stop defending our students’ religious freedom and the moral foundation of our nation.”
For more information on actions from the Texas Office of the Attorney General, visit texasattorneygeneral.gov or contact [email protected].
