Ken Paxton Sues Lorex Technology Over Alleged CCP Ties

Texas Attorney General Ken Paxton has filed a lawsuit against Lorex Technology Inc. and Lorex Corporation, alleging the company sold home security cameras and baby monitors manufactured, sourced, and serviced by Zhejiang Dahua Technology Co., a firm linked to the Chinese Communist Party.

According to the lawsuit, Lorex products contain components supplied by Dahua, which the U.S. government has designated as a national security risk. The U.S. Department of Defense has listed Dahua as a Chinese Military Company operating in the United States.

Texas has also added Dahua to its Prohibited Technologies List, barring the use of its hardware on state-owned devices and networks.

The attorney general's office argues that devices such as baby monitors and home security systems could present cybersecurity risks if foreign adversaries exploit embedded technology.

"Lorex has exploited parents' God-given desire to protect their kids and left them vulnerable to threats from China," said Paxton. "Any company that allows the Chinese Communist Party to threaten Americans' safety and security will face the full force of the law."

Lorex was acquired by Dahua in 2018 and retained ownership until November 24, 2022, when it sold the company to Skywatch Inc., a Taiwan-based firm. The sale occurred one day before a Federal Communications Commission order banned further product approvals for Dahua in the United States. Despite the ownership transfer, Paxton's office alleges Dahua has remained involved in Lorex's operations.

The lawsuit is seeking relief under the Texas Deceptive Trade Practices Act (DTPA), alleging that Lorex engaged in deceptive practices by marketing products as secure while allegedly incorporating technology from a company designated as a national security threat.

Paxton is seeking monetary penalties of up to $10,000 per violation of the DTPA, along with other relief permitted under state law.

The case adds to ongoing scrutiny at both the state and federal levels over Chinese-linked technology companies operating in U.S. markets.

If successful, the lawsuit could result in significant financial penalties and further restrictions on the sale of certain surveillance and consumer security products in Texas.