Texas has emerged as a heavyweight in high-stakes litigation, reeling in record-breaking settlements and hefty legal fees in battles against major corporations. Recently, the state secured a $1.4 billion settlement with Meta Platforms over alleged consumer privacy violations, with contracted law firms Keller Postman and McKool Smith collectively billing an eye-watering $142.6 million for their efforts.
The payout—averaging $3,100 per hour for over 42,600 hours of legal work—marks a milestone in U.S. legal history. Keller Postman partner Zina Bash hailed the settlement as the largest ever achieved by a single state, underscoring Texas’s aggressive stance on consumer protection.
This isn’t an isolated case. The Texas attorney general’s office has engaged at least 15 law firms since 2018 for a range of lawsuits, from environmental claims to antitrust violations. These firms operate under contingency contracts, banking on a percentage of recovered amounts or steep hourly rates for their expertise.
In another ongoing legal battle, Texas has taken on chemical giants 3M, Corteva, and DuPont, accusing them of hiding the risks of “forever chemicals.” The state also recently filed a lawsuit against asset managers BlackRock, Vanguard, and State Street, alleging antitrust violations tied to climate activism. These cases signal the state’s willingness to challenge corporate giants, with legal fees often topping $3,700 per hour.
Texas’s contracts with outside counsel are governed by laws ensuring reasonable fees, though the sheer scale of payouts often raises eyebrows. For instance, firms handling a biometric privacy lawsuit against Google could earn up to 27% of any successful recovery. Texas’s strategy of leveraging top-tier firms on contingency continues to yield landmark settlements, but also highlights the lucrative rewards for those representing the state.
Meanwhile, in a separate legal skirmish, healthcare provider DaVita reached a settlement with a whistleblower over attorney fees. The case revolved around claims that DaVita violated federal anti-kickback laws. Though details of the settlement are pending, the dispute underscores the contentious nature of legal fee awards in high-stakes litigation.
As Texas forges ahead with its courtroom battles, the state is not just shaping legal precedents but also redefining the economics of litigation, where billions are at stake and the cost of justice comes with a premium.
