H.B. No. 4281 introduces a new chapter, Chapter 100B, to the Civil Practice and Remedies Code, which establishes a civil cause of action for fraudulent crowdfunding. The bill defines "fraudulent crowdfunding" as the act of collecting donations intended for a donee but keeping the funds instead. It holds individuals who engage in such fraudulent activities liable to the donee for the donations collected on their behalf.

Additionally, the bill stipulates that a court must award a prevailing claimant 125 percent of the amount collected through fraudulent crowdfunding. It also clarifies that claimants can pursue exemplary damages under Chapter 41 related to the defendant's actions. The provisions of this new chapter will apply only to causes of action that accrue on or after the effective date of the Act, which is set for September 1, 2025.

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