Consumers Affected
880,000
Texas Attorney General Ken Paxton filed a lawsuit against PowerSchool, a provider of cloud-based services for K-12 schools, following a data breach that exposed the personal and health information of over 880,000 Texas school-aged children and teachers. The breach occurred in December 2024 when a hacker gained administrative access through a subcontractor's account and stole unencrypted data including Social Security numbers, medical details, and disability records. The lawsuit alleges PowerSchool violated Texas law by failing to implement basic security measures and by misleading customers about its security practices.
In-house legal teams should review all vendor agreements with education technology providers, particularly those handling student, children’s, or employee data, to ensure they include explicit requirements for multi-factor authentication, adequate access controls, and data encryption for all sensitive data. Contracts should also mandate compliance with applicable state privacy laws, require vendors to accurately represent their security standards without deceptive marketing claims, and include clear breach notification timelines and subcontractor security obligations. Additionally, teams should verify that vendors are contractually required to adhere to security best practices for protecting health information and student records, and that remedies for security failures are clearly outlined.
Entity
PowerSchool
Industry
Technology"PowerSchool"
"Texas Deceptive Trade Practices Act"
"Identity Theft Enforcement and Protection Act"
"unprecedented data breach exposed the sensitive personal identifying information and protected health information of more than 880,000 Texas school-aged children and teachers"
"failed to implement even the most basic security features, including multi-factor authentication, adequate access controls, and proper data encryption"
"provider of cloud-based services for K-12 schools"
$3.0M
Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.
$773.0M
Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.
Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.
$1.5M
The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.
The Texas Attorney General opened an investigation into UnitedHealth Group over allegations that its insurance-benefit administration and patient-care decisions denied Texans medically necessary healthcare. The AG issued Civil Investigative Demands to collect evidence; the release announces no penalty or remedy.
$7.5M
Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.