Texas Attorney General Ken Paxton filed suit against Texas American Muslim University (TexAM) for operating without required state authorization, offering unauthorized degrees, and misleading prospective students. TexAM lacked the necessary certificate of authority to operate as a private postsecondary institution, had a forfeited nonprofit corporate charter, and used branding confusingly similar to Texas A&M University. The AG seeks injunctive relief and civil penalties exceeding $1 million for violations of the Deceptive Trade Practices Act (DTPA) and Texas Education Code.
In-house legal teams at educational institutions or entities contracting with educational providers should review vendor and partnership agreements for clauses related to confirmation of valid certificates of authority, accreditation status, and degree-granting authorization from relevant state agencies. Teams should also include clauses requiring vendors to maintain active corporate charters, avoid trademark infringement (including confusingly similar branding to established institutions), and promptly disclose any cease and desist orders or regulatory actions. Additionally, agreements should include representations and warranties regarding the legality of offered degrees and programs to protect against liability from deceptive practices.
Entity
Texas American Muslim University
Industry
Education"Texas American Muslim University"
"violations of the DTPA and the Texas Education Code"
"civil penalties exceeding $1 million"
"unlawfully presenting itself as a university, offering degrees it is not authorized to grant, and misleading prospective students about its legitimacy"
"May 18, 2026"
Texas Attorney General Ken Paxton filed a lawsuit against proxy advisory firm Institutional Shareholder Services, Inc. (ISS) alleging violations of the Texas Deceptive Trade Practices Act by prioritizing political agendas over sound financial guidance in voting recommendations. The lawsuit seeks an injunction to stop deceptive practices and civil penalties of up to $10,000 per DTPA violation. This action follows a 2025 investigation into ISS and peer firm Glass Lewis & Co.
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