Twenty-Five Texas cities filed suit against Disney, Hulu and Netflix in a Texas state court seeking franchise fees for providing streaming services arguing that the streaming services violated the Texas Public Utility Regulatory Act by failing to pay video service fees. In response to the suit, the streaming services filed a motion to dismiss the suit which was denied by the trial court. On mandamus, the Dallas Court of Appeals sided with the streaming services, ordering the trial court to dismiss the case. Nextflix was represented by Carter Arnett.