Paxton’s Colony Ridge settlement gave defrauded homebuyers nothing, and a federal judge refused to approve it
Paxton sued the developer Colony Ridge in 2024, accusing it of deceptive marketing and predatory lending to Hispanic buyers. The $68 million settlement he announced in February 2026 put $48 million toward infrastructure and $20 million toward policing and immigration enforcement, and nothing toward the buyers. A federal judge refused to approve it because it gave victims no money.
What happened
Paxton’s 2024 lawsuit accused Colony Ridge of deceptive marketing and predatory lending to Hispanic buyers. 02
In February 2026, Paxton announced a $68 million settlement, resolved together with a federal case: $48 million for infrastructure, $20 million for law enforcement and immigration enforcement, and $0 for the people allegedly defrauded. 01 02 American Banker reported that Paxton’s office came up with the $20 million policing allocation. 03
In April 2026, U.S. District Judge Alfred Bennett refused to approve the deal because it gave victims no monetary relief. 03
Why it matters
The buyers Paxton said were cheated got nothing, while the money went to programs he could campaign on. A federal judge found that unacceptable. 01 03
Timeline
- Paxton’s $68 million Colony Ridge settlement gives defrauded buyers nothing
- Federal judge rejects the Colony Ridge settlement for giving victims no money
What the sources show
The settlement terms and the judge’s rejection are documented in reporting on the court record. 02 03
Paxton’s response
Paxton promoted the settlement as a win against an “illegal alien haven.” 01
Sources
- 01
- 02Trump’s DOJ plans to settle Colony Ridge case without compensating victimsThe Texas Tribune / ProPublica · April 9, 2026
- 03Judge rejects DOJ-Colony Ridge settlementAmerican Banker · April 14, 2026
Updates and corrections
- Case file published.