Texas Attorney General Ken Paxton sued Meta Platforms and WhatsApp for deceptive marketing practices.
The lawsuit alleges Meta falsely claimed end-to-end encryption prevents the company from viewing private messages.
Texas claims Meta employees and contractors can access virtually all user communications.
The state seeks financial penalties and an injunction to block the company's privacy assertions.
Meta denied the allegations and maintained it cannot access encrypted user data.
This legal action follows a $1.4 billion privacy settlement between Texas and Meta in 2024.