Texans for Vaccine Choice was handed a legal victory on Monday in a lawsuit against its former executive director, Jackie Schlegel.
Schlegel was accused of trademark infringement and making an illegal transfer from the organization to a separate 501(c)(3) charitable entity that she controlled, just before a meeting that was set to discuss her future as executive director.
Pending an appeal, Schlegel will be forced to pay $767,473.90 in damages and fees.
Background
Texans for Vaccine Choice (TFVC), a 501(c)(4)—a type of entity that can advocate for causes and candidates, but donations to it are not tax-deductible—was formed by three moms worried about the increasing imposition of vaccine mandates on children. These moms, Schlegel, Rebecca Hardy, and Michelle Evans (who later left the board and was eventually replaced by Christine Welborn) started the organization in 2015.
In 2016, a separate 501(c)(3) charitable entity—one that educates the public and to which donations are tax-deductible—was launched called Texans for Vaccine Freedom. By 2021, Schlegel and Hardy were board members of TFVF alongside Joel Starnes.
As previously reported, by 2021, the staff had allegedly grown unhappy with the direction Schlegel was taking the organization. The staff took their complaints to TFVC board members Hardy and Welborn, who scheduled a meeting with Schlegel to discuss the concerns and the future of the organization.
The evening before the meeting, TFVC’s lawsuit alleged that Schlegel transferred $116,000 out of the TFVC 501(c)(4) entity’s bank account and into the 501(c)(3) entity’s account. When the other board members were notified, they were able to reverse the transfer. This transfer, TFVC alleges, was totally unprecedented for the two organizations and was done to move money from an organization Schlegel did not control (the c4) into an organization she did control (the c3).
Schlegel characterized the movement of money as “usual year-end housekeeping.”
The Lawsuit
In January 2022, Texans for Vaccine Choice filed a lawsuit in the 17th Judicial District Court in Tarrant County against Schlegel. Accusations include trademark infringement, violating a non-disclosure agreement, and breaching her fiduciary duty.
“Defendants, using the names Texans for Vaccine Freedom and Texans for Vaccine Choice PAC are causing confusion, violating TFVC’s trademarks, utilizing protected business opportunities, and confidential information, all while trying to ‘rebrand’ themselves under a new name,” reads the lawsuit.
On Monday, TFVC was handed a victory in district court. The charge of the court revealed precisely what Schlegel is set to owe the organization in damages and fees.
The jury found that “Texans for Vaccine Choice” was eligible for protection as a trademark, and that Schlegel and “Texans for Vaccine Choice PAC” were in violation. Damages for failure to comply were assessed at $5,403.66.
Additionally, the jury determined that Schlegel failed to comply with her fiduciary duty to TFVC—although no damages were awarded for this violation.
The jury assessed the “reasonable fee” for TFVC’s attorney’s legal services to be $575,313.99, with $200,000 of that amount having been assessed for future fees pending appeals. Additional attorney’s fees related to defending against the defendants’ Texas Citizens Participation Act motion to dismiss were assessed at $186,756.25.
Altogether, Schlegel is set to owe TFVC $767,473.90.
TFVC celebrated the outcome.
“The truth prevailed, integrity was upheld in a court of law yesterday, and TFVC is satisfied with the verdict,” Evans told Texas Scorecard. “We made repeated, good-faith efforts over the course of four years to resolve this matter outside of trial, but Ms. Schlegel was unwilling to entertain reasonable solutions.”
“Ultimately, twelve jurors affirmed our organization’s origins and the facts surrounding Ms. Schlegel’s departure,” she continued. “We are deeply grateful to our supporters and donors who stood with us throughout this process and remain committed to our shared mission of defending medical liberty. We look forward to continuing this work and celebrating meaningful victories together.”
TFVC’s fight may not be over just yet.
A spokesperson for Schlegel’s new organization, Texans for Medical Freedom, said she was exploring her legal options.
“Today’s court outcome is disappointing, but it does not define this effort or the truth behind it,” wrote the spokesperson. “It shows the lengths powerful West Texas interests and extreme ideological coalitions will go to try to silence dissent.”
According to the spokesperson, “Texans for Medical Freedom is actively exploring all legal options before this matter is concluded. Our commitment to transparency, individual liberty, and accountability remains firm.”
What Happens Next
Schlegel is currently running in the Republican Primary Election for Texas House District 94, which covers large parts of Tarrant County. She has been endorsed by Gov. Greg Abbott.
The election, which will likely determine who succeeds retiring State Rep. Tony Tinderholt, will be held on March 3.
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