Servergy, Inc. – the company at the center of Attorney General Ken Paxton’s legal woes – has been sued by a group of Alabama investors who claim they were defrauded into purchasing shares of the company. The suit alleges that Servergy made numerous misrepresentations about its business to entice new investors to buy into the company. The investors claim that Servergy made unsupported claims about the sales of its signature product – a small server – and represented that IBM and other giants were poised to buy the company. Paxton himself brought investors to the table without revealing that he was getting a commission. Tea Party favorite Paxton never bought into the company but did receive 100,000 shares as a gift that he somehow forgot to put on his tax returns and his required disclosures with the Texas Ethics Commission.