A $10 million settlement for senior fraud victims, Denton blocked from allowing men in women’s changing rooms, Supreme Court approves Texas’s Rio Grande water rights deal, app store age verification upheld, Celsius and Alani Nu investigated over dangerous caffeine levels marketed to children, and a GreenSky loan scheme dismantled — here is what came out of the Texas Attorney General’s office this week.
Paxton Wins Denton Changing Room Battle — Women and Children Protected at Public Pool
In a week that saw a lawsuit filed and then won in rapid succession, Paxton sued the City of Denton on May 19 to stop the creation of gender-neutral multiple-occupancy changing rooms at the Quakertown Civic Center’s public swimming pool — and by the end of the week had secured an agreement from the city to comply with Texas law.
The dispute arose ahead of a June 7 event at the publicly owned, child-friendly facility organized by PRIDENTON and OUTreach Denton. Event organizers had publicly advertised that gender-neutral changing rooms would be available on-site. Paxton notified the city on May 19 that this would violate the Texas Women’s Privacy Act — Senate Bill 8 — which requires publicly owned private spaces to be designated by biological sex and requires governmental entities to take reasonable steps to prevent individuals of the opposite sex from entering designated spaces.
Following legal action, the City of Denton agreed to maintain its existing sex-specific changing room designations, preserve its usual signage separating men’s and women’s changing areas, prevent any alteration or coverage of changing room signs, prohibit renters from operating gender-neutral changing areas on premises, and require event organizers to commit to following Texas law.
“This is a major victory for the privacy and safety of women and children,” said Paxton. “The City of Denton has now agreed to follow the law and ensure that men are not allowed in women’s and girls’ changing areas. I will continue to ensure that every government entity in Texas complies with our laws protecting women and children.”
U.S. Supreme Court Approves Historic Rio Grande Water Rights Settlement
The U.S. Supreme Court issued final approval of a multi-state settlement addressing the long-disputed distribution of Rio Grande water among Texas, New Mexico, and Colorado — a case Texas filed in 2013 after years of what Paxton’s office described as unfair siphoning of water from the river before it reached the Texas state line.
The dispute centered on a stretch of the Rio Grande between Elephant Butte Reservoir in New Mexico and the Texas state line. Under the Rio Grande Compact, New Mexico and Colorado carry delivery obligations to ensure water reaches Texas. The approved settlement requires New Mexico to properly control groundwater pumping that draws water directly from the Rio Grande — ensuring Texas receives its proper allocation.
A Special Master appointed by the Supreme Court submitted a report recommending approval of the final decree, which the Court has now granted.
“The approval of this agreement is a historic win for the people of Texas, our economy, and our state’s water rights,” said Paxton. “This agreement helps Texas farmers and families receive the water they depend on every single day from the Rio Grande.”
App Store Age Verification Law Upheld — Fifth Circuit Stays Injunction
Paxton secured a significant legal victory when the U.S. Court of Appeals for the Fifth Circuit ruled that a district court’s injunction blocking Texas’s app store age verification law — Senate Bill 2420 — should be stayed while the Fifth Circuit considers Paxton’s full motion to stay pending appeal.
SB 2420, passed by the Legislature and signed by Governor Abbott on May 27, 2025, requires major app store owners — primarily Apple and Google — to use commercially reasonable methods to verify users’ ages, link minor accounts to a parent or guardian account, and require parental notice and approval before a minor can download an app. A federal district judge blocked the law in December 2025. Paxton appealed and the Fifth Circuit has now halted that block while the case proceeds.
“Texas has not only the right, but the duty, to protect children from the harms of our modern digital space,” said Paxton. “Parents deserve to know what their children are downloading and to have the ability to stop them from accessing harmful or inappropriate content.”
Paxton Secures $10 Million Settlement Against GreenSky for Preying on Senior Citizens
Paxton helped secure a $10 million multistate settlement with GreenSky Holdings, LLC and GreenSky, LLC following a Texas-led investigation into deceptive and unlawful lending practices targeting senior citizens and disabled Texans.
GreenSky is a financial technology company facilitating home improvement and health care loans of up to $25,000 with interest rates as high as 25 percent APR. Consumer complaints received by the OAG alleged that loans were issued without consumers’ knowledge, loan terms were misrepresented, elderly individuals — including those with dementia — were specifically targeted and pressured into agreements they did not legally consent to, and GreenSky failed to cancel loans upon valid requests, holding individuals financially responsible for home improvement work that was never performed.
In addition to the $10 million in consumer restitution, civil penalties, and fees, the settlement includes heightened protections for senior citizens and disabled individuals and requires yearly compliance reporting to the OAG.
“Any company operating predatory loan schemes that make life harder for Texans, including causing higher housing prices, will be forced to pay the price,” said Paxton. “GreenSky broke the law, and now the company is being held accountable.”
Paxton Investigates Celsius and Alani Nu Over Dangerous Caffeine Levels Marketed to Children
Paxton launched an investigation into Celsius Holdings, Inc. and its subsidiary Alani Nutrition, LLC — maker of the popular Alani Nu energy drink — over concerns that the company markets a product containing dangerous levels of caffeine directly to teens and children through colorful packaging and youth-oriented branding.
Each 12-ounce can of Alani Nu contains 200 milligrams of caffeine — a level the National Institutes of Health considers dangerous for children and adolescents, citing documented risks including elevated heart rate, heart palpitations, high blood pressure, anxiety, and dehydration. The product’s packaging lists caffeine content but provides no age-related warnings or heart-health advisories.
The investigation was prompted in part by the case of a 17-year-old girl from Weslaco, Texas whose family is suing the distributor of Alani Nu, alleging she died from an enlarged heart caused by excessive caffeine consumption. The family’s lawsuit claims the product failed to provide adequate warnings — a failure the OAG takes seriously.
Paxton issued a Civil Investigative Demand and will investigate whether Celsius and Alani mislead consumers about product safety for teens and children under the Texas Deceptive Trade Practices Act.
“The tragic death of a 17-year-old Texas girl allegedly caused by consuming a highly caffeinated energy drink is a sobering reminder of what is at stake when companies prioritize profit over the safety and wellbeing of our children,” said Paxton. “I am looking into Celsius and Alani Nu to prevent more cases like this one.”
For more information on actions from the Texas Office of the Attorney General, visit texasattorneygeneral.gov or contact [email protected].
