Texas Attorney General Ken Paxton said on Feb. 20 that the state sued a venture capital company over the sale of chest binders used by girls who identify as transgender.
The suit alleges Lola Olivia, Inc. did not disclose the potential health risks associated with chest binders, violating multiple consumer protection laws in the state.
“‘Transitioning’ a minor is child abuse, and any corporation doing it will face swift and unrelenting justice,” Paxton said.
The attorney general alleges that the company has violated the Texas Business and Commerce Code, which prohibits “false, misleading, or deceptive acts” in the course of conducting commerce. The suit also cites a portion of the law that “prohibits causing confusion or misunderstanding” concerning the source, approval, or certification of goods.
The complaint points to a potential for future compromised lung function and difficulty in breast development and breastfeeding later in life, among other potential health consequences.
The lawsuit came two days after Paxton announced a suit against Children’s Health System of Texas and Dr. Jason Jarin, a Dallas-area pediatric doctor, for performing transgender procedures.
The attorney general’s office said the complaint focuses on what it describes as deceptive marketing practices, including advertising the binders to minors.
“It’s unconscionable that there are people in this world who are trying to make a fortune by hurting kids, but that’s exactly what’s going on here,“ Paxton said. ”I will be bringing the full force of the law against Lola Olivia for misleading Texans about the extreme harm that its products cause our kids.”
The attorney general’s office cited the binders’ classification as a Class I medical device, which means it is regulated by federal law.
Late in 2025, the Food and Drug Administration (FDA) sent letters to several companies that sell similar binders, saying “these products are devices because they are intended for use in the diagnosis of disease or other conditions or in the cure, mitigation, treatment, or prevention of disease, or to affect the structure or any function of the body.”
According to the FDA, the companies contacted last year “misbranded” the devices on their websites by recommending them for the compression of breast mass into a “more masculine shape.”
Lola Olivia, Inc. did not immediately respond to The Epoch Times’ request for comment on the suit.
In a blog post from November of 2021, the company said, “We at Lola Olivia are proud advocates for the trans youth community.”
The company stated its belief that “gender-affirming clothing” is “one of the best ways to help a trans teen. ... Wearing clothing that they identify will open up a whole world of opportunities for your kid to express themselves in the body they identify with.”
Paxton announced additional health care fraud claims against the hospital, which is the country’s seventh-largest pediatric hospital, and its division director of children’s health, citing what Paxton said are illegal procedures.
“I will use every legal tool available to ensure radical gender activists like Jarin face justice for hurting our kids,” Paxton said. “Experimental ‘transition’ procedures on minors are illegal, unethical, and will not be tolerated in Texas.”
Neither Jarin nor Children’s Health immediately responded to requests from The Epoch Times for comment.
