In a new lawsuit filed by Texas against the networking company TP-Link Systems, Texas alleges that the company allowed Chinese state-backed hackers to exploit firmware vulnerabilities in their routers while falsely marketing them as secure. The lawsuit, initiated by Texas Attorney General Ken Paxton, also claims TP-Link misled consumers by labeling products “Made in Vietnam” despite sourcing components from China. This is significant due to Chinese laws that could compel firms with Chinese supply-chain ties to cooperate with intelligence services. Paxton’s office highlights multiple security failures, including TP-Link devices being used in credential-theft botnets linked to Chinese hackers in 2023 by Check Point Research. The lawsuit demands civil monetary penalties and injunctions requiring TP-Link to disclose its Chinese origins and stop collecting data without consent. TP-Link, however, denies the allegations, asserting its independence from Chinese government control and stating that US user data is stored on Amazon Web Services servers. TP-Link emphasizes its operations are based in the US, with its founder residing in California. Despite concerns from the US intelligence community, some experts believe the lawsuit’s impact may be limited, given the complex international implications.