Texas HB4281 creates a civil cause of action for fraudulent crowdfunding, holding individuals liable to the intended donees and awarding damages.

Texas HB4281 amends the Civil Practice and Remedies Code to establish a civil cause of action for fraudulent crowdfunding. It defines "fraudulent crowdfunding" as collecting donations with the intent to keep them instead of giving them to the intended donee. Individuals found guilty of fraudulent crowdfunding are liable to the donee and must compensate the donee with 125 percent of the collected donations. The law also allows for claims of exemplary damages under Chapter 41. This Act applies to causes of action accruing after its effective date of September 1, 2025.

Texas HB4281 creates a civil cause of action for fraudulent crowdfunding, holding individuals liable to the intended donees and awarding damages.

Texas HB4281 amends the Civil Practice and Remedies Code to establish a civil cause of action for fraudulent crowdfunding. It defines "fraudulent crowdfunding" as collecting donations with the intent to keep them instead of giving them to the intended donee. Individuals found guilty of fraudulent crowdfunding are liable to the donee and must compensate the donee with 125 percent of the collected donations. The law also allows for claims of exemplary damages under Chapter 41. This Act applies to causes of action accruing after its effective date of September 1, 2025.