FOLLOW US

Kelcy Warren, the ex- CEO of Energy Transfer, has filed a civil lawsuit against the Democratic nominee for Texas Governor, Beto O’Rourke. The Texas billionaire claims Beto is publicly defaming and slandering him.

The lawsuit was filed in the District Court of San Saba County, Texas. Warren seeks over $1 million in damages from the legal action announced Monday, March 7.

The Federal Energy Regulatory Commission (FERC) has been investigating whether any energy companies used the weeklong freeze to manipulate the market to increase profits. To date, the FERC has not accused the company of any wrongdoing.

Campaign trail narrative

At the heart of Beto’s campaign is the February 2021 power grid failure that left millions of Texans without power in freezing weather. And led to 246 deaths. 

According to a Bloomberg article, Warren’s Energy Transfer Partners reportedly made $2.4 billion off the storm due to the soaring demand for gas.

8 months later, Warren cut a $1 million check to Abbott’s reelection campaign. 

Warren, 66, co-founded the pipeline company Energy Transfer with Ray C. Davis in 1996. It made them both billionaires. And although Warren stepped down as CEO in 2020, he remains the Executive Chairman of the company.

Robert Francis O'Rourke (Beto) served Texas's 16th congressional district in Congress from 2013 to 2019. A Democrat, Beto had a short run for the presidency in the 2020 primary. And now he is touring the state as a candidate for Governor of Texas. And according to Warren accusing him of “extortion, bribery, and corrupt influence”

Texas billionaire files Defamation lawsuit

 Warren previously sent O’Rourke a cease-and-desist letter which demands he stop “hurling further defamatory falsehoods” against him. But O’Rourke refused to stop the accusations.

The lawsuit claims that the candidate for governor has been engaged in a “relentless and malicious attack” on the oilman. And alleges defamation, slander, and libel. 

“…Defendant O’Rourke began a relentless and malicious attack on Warren by accusing him of serious crimes including extortion, bribery, and corrupt influence simply because Warren made a campaign contribution to Governor Abbott in June 2021 and is the former CEO of Energy Transfer. Defendant O’Rourke’s malicious statements about plaintiff Warren constitute defamation,” from the 19-page filed documents.

The lawsuit also says Beto has seized a $1 million donation to Greg Abbott’s campaign to falsely accuse Warren of “serious crimes including extortion, bribery, and corrupt influence.” 

Beto is currently running against Abbott to replace him as governor.

In response to the legal maneuvering, Governor Abbott’s campaign issued a statement. It says, “Our campaign is in no way involved in this lawsuit… Beto O’Rourke continues hiding his support for the Green New Deal, which would kill hundreds of thousands of good-paying energy jobs…”

Beto O'Rourke press conference

Monday Beto had a press conference.

The Texas politician said of the Texas billionaire, “He is following through on his threat, and he is going to try to take me to court, use his billions of dollars to try to shut me down and shut us up from telling the story of what happened to the people of Texas.” 

“All I have done today and all I have done over the course of the campaign is share these facts,” O’Rourke said Monday. And argued that “when we connect the dots and follow the money, we see that Greg Abbott has put profits over people.”

O’Rourke said he would use his campaign funds to defend himself. He was not worried about the cost.  And he thinks the lawsuit is “so frivolous.”

“We are on the most solid ground possible,” O’Rourke added.