Texas Children’s Hospital settles for $10 million and agrees to create the nation’s first Detransition Clinic, Netflix is sued for spying on kids, LG settles over smart TV surveillance, 130-plus cities blocked from raising taxes, Dallas County Sheriff put on notice over ICE cooperation, Agri Stats settles over meat pricing, Netflix sued, and a North Texas H-1B fraud scheme exposed — here is what came out of the Texas Attorney General’s office this week.
Texas Children’s Hospital Pays $10 Million and Agrees to Create Nation’s First Detransition Clinic
In what Paxton called a historic settlement, Texas Children’s Hospital agreed to pay $10 million for billing Texas Medicaid for what the OAG describes as unallowable and illegal gender-transition interventions using false diagnosis codes, and agreed to establish the first-ever multidisciplinary Detransition Clinic in the country.
Under the settlement terms, Texas Children’s will establish a clinic specifically designed to provide medical care to patients who were subjected to gender-transition procedures and seek to reverse them. For the first five years, all Detransition Clinic services will be funded by Texas Children’s and provided free of charge to patients.
Five physicians who performed the interventions will be fired, have their hospital privileges permanently and irrevocably terminated, and will never be hired or credentialed by Texas Children’s again. The hospital also agreed not to provide gender-transition services going forward, implement compliance and ethics measures, and amend its bylaws to trigger automatic privilege relinquishment for any physician who violates Texas’s prohibition on medical interventions to transition children. The settlement was coordinated with the Trump Department of Justice.
“Today is a monumental day in the fight to stop the radical transgender movement,” said Paxton. “I applaud Texas Children’s Hospital for changing course and committing to being a part of the solution by agreeing to form a first-of-its-kind Detransition Clinic that will help provide free care to those who have been victimized.”
Paxton Sues Netflix for Spying on Texans and Children
Paxton sued Netflix for collecting user data — including data from children’s profiles — without informed consent and for misrepresenting its data practices to consumers.
According to the OAG, Netflix tracks and logs users’ viewing habits, preferences, devices, household networks, application usage, and other behavioral data through intentional engineering — then discloses that information to commercial data brokers and advertising technology companies. Netflix earns billions annually from this data, the lawsuit alleges, while publicly representing itself as an ad-free, privacy-respecting platform.
The lawsuit also targets Netflix’s autoplay feature, which the OAG characterizes as a manipulative design tool intended to keep users — including children — watching for extended periods. Paxton is seeking to stop the unlawful data collection and disclosure, require Netflix to disable autoplay by default on kids’ profiles, and secure civil penalties under the Texas Deceptive Trade Practices Act.
“Netflix is not the ad-free and kid-friendly platform it claims to be,” said Paxton. “Instead, it has misled consumers while exploiting their private data to make billions. I will continue to work to protect Texas families from deceptive practices by Big Tech companies.”
LG Settles Over Smart TV Surveillance — Stops Collecting Viewing Data Without Consent
Paxton secured a settlement with LG Electronics U.S.A. requiring the company to stop using Automated Content Recognition technology to collect consumers’ viewing data without informed consent.
Under the agreement, LG must update its smart TVs to display a clear pop-up disclosure explaining how viewing data may be collected and used, include the disclosure on its website, and give users a clear opt-out option. Critically, the settlement prohibits LG from transferring viewing data in any form to the Chinese Communist Party.
“No electronics company should be collecting consumers’ data and exposing Texans to potential surveillance by the Chinese government,” said Paxton. “I am pleased to see that after my office took action, smart TV companies are doing what is necessary to protect Texans.”
This settlement follows a prior agreement with Samsung. Cases against Sony and Hisense and TCL Technology — the latter two China-based — remain ongoing.
Paxton and Trump DOJ Secure Antitrust Settlement With Agri Stats to Lower Meat Prices
Paxton, working alongside the Trump administration’s Department of Justice, secured a landmark settlement with Agri Stats, Inc. — a company that facilitated the sharing of costs and competitively sensitive information among meat processors, enabling coordinated pricing across the chicken, pork, and turkey industries.
Under the settlement, Agri Stats agreed to make industry-shifting changes to the type of information it can distribute and how it distributes it, and will make monetary payments to participating states. The settlement is expected to restore competition and lower consumer prices for chicken, pork, and turkey nationwide.
“Americans deserve fairly priced groceries, and I am honored to have partnered with President Trump’s DOJ to lower the cost of chicken, pork, and turkey,” said Paxton. “Agri Stats facilitated the sharing of information that killed true competition in pricing and raised the price of food for consumers.”
Paxton Launches Beef Industry Antitrust Investigation Alongside Trump DOJ
Paxton launched an investigation into the nation’s largest meatpackers — JBS S.A., Tyson Fresh Meats, Cargill, and National Beef Packing Co. — which together control more than 85 percent of the nation’s beef processing market. The investigation will run in coordination with the Trump DOJ’s parallel antitrust probe.
According to the OAG, these four firms may have used their market dominance to simultaneously decrease prices paid to cattle ranchers while driving up beef prices for consumers.
“Texans deserve fairly priced beef and our state’s cattle ranchers deserve to be paid fairly for their hard work,” said Paxton. “If major meatpackers manipulated the market to underpay ranchers while forcing families to pay higher prices at the grocery store, we will hold them accountable.”
Industry participants with concerns about potential antitrust violations, including price fixing or market manipulation, are encouraged to contact the OAG’s Antitrust Division at [email protected].
Paxton Warns CVS Over DEI Supplier Practices and Potential Medicaid Fraud
Paxton sent a warning letter to CVS Health over its Supplier Diversity Program — which the OAG says reserves a significant portion of contracts for suppliers meeting demographic criteria including minority ownership, women ownership, and LGBT ownership — that may violate state and federal civil rights laws.
The letter notes that CVS, as a Medicaid pharmacy provider, may face significant liability under the Texas Health Care Program Fraud Prevention Act if its programs discriminate in violation of applicable law. CVS’s practices may also conflict with President Trump’s Executive Order 14173 prohibiting federal contractors from considering race, color, sex, sexual preference, religion, or national origin in ways that violate civil rights laws.
Paxton demanded that CVS notify the OAG’s Healthcare Program Enforcement Division of steps taken to comply with anti-discrimination law within 14 days.
“People must be judged on the basis of merit, not the color of their skin,” said Paxton. “My office will stand firmly against racist DEI policies. Whether it is found in hiring processes or contract determinations, I will take a sledgehammer to any radical DEI policies that discriminate against Americans.”
Paxton Sues North Texas Company for Using Fake Childcare Businesses to Fraudulently Obtain H-1B Visas
Paxton sued Golden Qi Holdings, LLC and its owner Yuan Yao, a Chinese national, for allegedly operating fake childcare businesses to fraudulently sponsor H-1B visas for employees.
The lawsuit alleges that Yao owns several Texas entities — including Allen Infant Care Center and DFW ABA Center — that advertise childcare services that don’t exist. A Blaze Media reporter who visited the Allen Infant Care Center address found an empty building and an overgrown playground. A source familiar with the property claimed the facility has not operated for an extended period and alleged that Yao “sells visas” — and that Yao’s father works for the Chinese government, which sends him significant amounts of money. The OAG alleges Yao received federal and state childcare and business subsidies but used none of it for actual childcare.
Paxton is seeking to halt the violations of the Texas Deceptive Trade Practices Act and Texas Human Resources Code and recover up to $10,000 per violation in civil penalties.
“Let this be a warning to anyone considering trying to scam the H-1B visa program,” said Paxton. “My office will continue to work to stop any foreign national from entering this country unlawfully.”
Paxton Demands Dallas County Sheriff Comply With ICE Cooperation Law
Paxton sent a demand letter to Dallas County Sheriff Marian Brown requiring her to seek a formal agreement with ICE under Texas Senate Bill 8, which became effective January 1, 2026 and requires county sheriffs who operate jails to enter into formal 287(g) agreements with ICE authorizing state officers to perform immigration enforcement functions.
Following the law’s passage, Sheriff Brown publicly declared that “no additional efforts” would be put toward such an agreement. Paxton’s letter demands Brown request and enter the required agreement with ICE and report back to the OAG before June 1, 2026.
“I will not allow the people of Dallas County to suffer because the Sheriff refuses to work with ICE to keep violent illegals off our streets,” said Paxton.
Paxton noted that sheriffs in El Paso, Bexar, and Harris Counties have either finalized ICE agreements or are actively negotiating them.
Paxton Blocks 130-Plus Texas Cities From Raising Property Taxes
Paxton sent letters to more than 130 Texas cities notifying them that they are prohibited from raising ad valorem taxes above the no-new-revenue rate after they failed to comply with financial statement audit and transparency requirements under Senate Bill 1851.
The letters follow Paxton’s investigation of over 1,000 Texas municipalities for SB 1851 compliance. More than 130 cities were found to have failed to meet the statutory requirements, triggering the enforcement provisions that bar them from raising property taxes above the no-new-revenue rate.
“I will not allow cities to unlawfully raise taxes on hardworking Texans,” said Paxton. “Cities cannot fail to abide by state audit requirements without consequences. My office will continue to aggressively enforce Texas law to protect taxpayers across the state.”
Paxton Congratulates New Texas Supreme Court Justices
Paxton offered congratulations to newly invested Texas Supreme Court Justices Kyle Hawkins and James Sullivan. Hawkins previously served as Solicitor General in Paxton’s office. Sullivan previously served as an Assistant Solicitor General before becoming General Counsel to Governor Abbott, in which role he continued assisting the OAG in litigation against the Biden administration.
“I know both Justice Hawkins and Justice Sullivan will continue to serve Texans well, defend the Constitution, and uphold the rule of law,” said Paxton.
For more information on actions from the Texas Office of the Attorney General, visit texasattorneygeneral.gov or contact [email protected].
