Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • The New York Attorney General Letitia James and a coalition of five attorneys general reached a $6.5 million settlement with Morgan Stanley Smith Barney LLC  for compromising millions of customers personal information. Morgan Stanley engaged an inexperienced moving company to decommission hard drives and servers holding sensitive customer data. Insufficient monitoring led to the sale of equipment, some still containing private information, at auction. The issue came to light only when a buyer found the data and notified the company. Because of Morgan Stanley’s failure to properly monitor the moving company, computers were not adequately decommissioned and unencrypted data was not erased from certain computer devices that contained sensitive customer information.

Arizona

  • Arizona Attorney General Kris Mayes filed a lawsuit against several pharmacy benefit managers and pharmaceutical manufacturers for scheming to artificially inflate the price of insulin and other diabetes drugs in violation of the Arizona Consumer Fraud Act. 

California

  • Attorney General Rob Bonta and the Federal Trade Commission filed an antitrust lawsuit in the United States District Court for the Northern District of California, challenging John Muir Health’s acquisition of San Ramon Regional Medical Center from Tenet Healthcare Corporation, claiming the acquisition is inherently anticompetitive and illegal under the Clayton Act. The lawsuit argues that the proposed acquisition threatens to eliminate substantial competition and increases consolidation in a highly concentrated market, which will lead to an increase in prices for patients, employers, and insurers. The lawsuit aims to prevent John Muir from becoming the sole owner of San Ramon Regional Medical Center.
  • Attorney General Rob Bonta and the FTC announced a $700,000 settlement with CRI Genetics, a California company offering DNA testing and ancestry services. The settlement resolves allegations that CRI offered false and misleading consumer reviews and testimonials, misled consumers about the superiority of its genetic testing services and engaged in deceptive billing practice. The settlement also bars the founder of CRI from engaging in future deceptive practices.

District of Columbia

  • Attorney General Brian L. Schwalb announced that the Office of the Attorney General resolved three investigations into employers who violated the District’s ban on non-compete agreements. Healthcare Staffing, Inc., a staffing firm, and SPiN DC, LLC, a ping pong social club, will pay collectively more than $150,000 to workers and the District as part of the settlement. The staffing firm, social club, and Hissho International, LLC, a food service company, will be required to change their policies to ensure compliance with the law.

Massachusetts

  • Massachusetts Attorney General Andrea Campbell publicized a settlement, through an assurance of discontinuance, with Rent-A-Center, which resolves allegations that the company engaged in a pattern of unfair and deceptive business practices against consumers in violation of state consumer protection laws. Rent-A-Center will pay $8.75 million in civil penalties to the Commonwealth, and make significant changes to its business practices to comply with state consumer protection laws, including fair debt collection and repossession practices.

New Hampshire

  • New Hampshire Attorney General John M. Formella reported that the Belknap County Grand Jury returned three indictments charging Gerard Michael Healey with three class A felony counts of Theft. The indictments stem from an investigation which previously led to Healey being charged with 19 misdemeanor counts alleging he collected customer deposits in violation of New Hampshire’s Consumer Protection Act. In total, Healey is accused of stealing approximately $209,000.


New Jersey

  • New Jersey Attorney General Matthew J. Platkin and the Division of Consumer Affairs announced that Dollar General Corp., a national discount retail chain with 186 stores in New Jersey, has agreed to pay $1.2 million to resolve allegations by the Division’s Office of Weights and Measures (OWM) that the chain repeatedly engaged in pricing violations at several retail stores across the state. The settlement, which includes a $1.18 million civil penalty, is the largest ever obtained by OWM.

Pennsylvania

  • The Pennsylvania Attorney General Michelle Henry announced a lawsuit against Real McKoy Auto Sales, LLC, a Delaware based used vehicle dealer, and its owner, Ervin McKoy, for undisclosed issues with vehicles sold “as-is,” and failure to give buyers title documentation. The lawsuit asserts that Real McKoy engaged in unfair and deceptive acts and practices in violation of the Consumer Protection Law.  Specifically, consumers alleged that used vehicles they purchased broke down or were deemed unsafe to drive days after they were purchased from Real McKoy.
  • Aramingo Pharmacy, through its owner, Ahmed Bachir, pleaded guilty to Medicaid fraud after an investigation uncovered hundreds of thousands of dollars in fraudulent claims to health insurance providers, including Medicaid. Bachir will be required to pay $573,992 in restitution to the health insurance providers and $300,866 to the Commonwealth’s Bureau of Program Integrity, for a total restitution payment of $874,858.

Utah

  • Utah Attorney General Sean Reyes and the Utah Department of Commerce’s Division of Consumer Protection filed a lawsuit against Eli Lily, Novo Nordisk, and Sanofi, insulin manufacturers, and CVS Caremark, Express Scripts, and OptumRx, pharmacy benefits managers, for their involvement in an insulin pricing scheme. The lawsuit alleges that the manufacturers and PBMs worked together to inflate the reported price of diabetes medication. PBMs would raise prices during the pharmaceutical pricing chain, while manufacturers raised the price of diabetes medication only to refund a portion back to PBMs through rebates, discounts, credits, and administration fees.


Washington

  • Washington Attorney General Bob Ferguson publicized that his office will partner with tribes across the State to research, identify and create an inventory of cold cases involving missing and murdered Indigenous people that date back more than 40 years. The federal Emmett Till Cold Case Investigations and Prosecution Program supports state, local and tribal law enforcement efforts to investigate and prosecute cold cases from before 1980 that involve racially motivated crimes or civil rights violations.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • Montana Attorney General Knudsen is leading a coalition of 17 Republican attorneys general that filed an amicus brief in a challenge to a Hawaii law prohibiting the carry or possession of firearms in designated “sensitive” places. Wolford v. Lopez is pending before the Ninth Circuit, where the coalition urges the Court to affirm a District Court decision that blocked Hawaii from enforcing much of the ban.
  • Iowa Attorney General Bird joined 22 other Republican attorneys general in an amicus brief supporting a mother suing a California school district for allowing her child to socially transition according to the child’s gender identity. The mother and the attorneys general are asking the Ninth Circuit to reverse a District Court decision which approved of the school district’s action as compliant with California law.
  • Utah Attorney General Reyes announced a decision agreeing with an amicus brief that he and nine other Republican attorneys general filed in Wawa v. Frank. The Third Circuit held that the attorneys’ fees awarded were too great a proportion of the overall settlement resolving claims arising from a nationwide data breach. On remand, the District Court must consider “whether ‘the funds made available to class members rather than the amount actually claimed during the claims process’ is the best measure of reasonableness; and whether the fee award is reasonable in light of any side agreements between class counsel and Wawa.”
  • California Attorney General Bonta joined a coalition of 18 attorneys general in submitting a comment letter to U.S. Treasury Secretary Janet Yellen expressing strong support for the Internal Revenue Service’s (IRS) Direct File pilot program. The pilot program will allow eligible taxpayers to file their 2023 federal taxes directly with the IRS for free.

Alabama

  • Alabama Attorney General Marshall sent a letter to local leaders statewide addressing the millions of dollars local jurisdictions will receive from opioid settlements for the specific purpose of abating the opioid crisis. The letter emphasizes the importance of implementing long-term strategies to address the crisis, as well as reinforcing the settlement terms. Any funds spent on non-approved purposes could cost the State future payments from the opioid defendants and delay efforts to combat the opioid crisis.

Colorado

  • Attorney General Weiser announced that his office reached a settlement with Omni Hotels that will end the chain’s practice of advertising room prices lower than the total cost including all required fees. The agreement comes after an investigation which found that the company was not being transparent with customers about the total nightly price of their rooms.
  • Attorney General Weiser announced a settlement with consumer lender MoneyLion after an investigation found the company collected illegal membership fees from Colorado consumers tied to loans. MoneyLion provided low-APR loans for consumers who paid monthly membership fees. MoneyLion told consumers the memberships could be canceled at any time, but prohibited cancellation once they took out loans. The settlement includes $271,000 in restitution.

District of Columbia

  • Attorney General Schwalb announced a settlement with Potomac Electric Power Company (PEPCO) that requires PEPCO to pay $57 million towards cleanup of the Anacostia River and in penalties for polluting the river. This pollution disproportionately impacted lower-income Black residents, and the settlement “represents a major step toward addressing pollution that has resulted in multi-generational health impacts, particularly in communities of color.”

Florida

  • Attorney General Moody announced that the state’s Military and Veterans Assistance Program (MVAP) had recovered nearly $3.5 million for military members, veterans, and families victimized by scams and deceptive business practices since 2019. AG Moody’s office detailed several major scams they disrupted and provided contact information to report scams targeting service members or veterans.

Indiana

  • Secretary of State Morales and Securities Commissioner Castetter announced a settlement with precious metals dealer Safeguard Metals, LLC and Jeffrey Ikahn in a federal lawsuit alleging that Safeguard and Ikahn engaged in a nationwide $68 million fraudulent scheme that targeted the elderly. The scam involved price manipulation of precious metals in order to take advantage of inexperienced investors.
  • Attorney General Rokita announced the recall of numerous candies and other products intended for children. The Consumer Product Safety Commission identified 12 candy or toy products as unsafe, and urged consumers to stop using the recalled products and pursue resolution from the manufacturer.

Michigan

  • Attorney General Nessel issued a public service announcement that members of Generation Z – those born between the late 1990s and early 2010s – are three times more likely to be victims of online scams. Those under 20 lost an estimated $8.2 million in 2017 and $210 million in 2022, a more than two-thousand percent increase, per the FBI’s Internet Crime Reports.
  • Attorney General Nessel celebrated reforms that eliminated certain immunities from product liability claims asserted against pharmaceutical companies. She anticipates that these changes will allow her office to more straightforwardly address the conduct of certain companies in the context of the opioid epidemic and price gouging for insulin, and to recover of taxpayer dollars paid out from the Medicaid program due to fraud.
  • Attorney General Nessel filed suit to dissolve two business entities in response to their purported practice of ‘cloning’ legitimate businesses and procuring organizational licenses by fraud. As described in the lawsuit: “Cloning involves a fraudster creating a new legal entity with a name that is the same as, or very similar to, an existing company name. Depending on the nature of the scam, the fraudster might also use address, telephone number, or other information belonging to the legitimate business that has been cloned.”

Minnesota

  • Attorney General Ellison announced a settlement with Network 46, a student loan debt relief company that illegally collected fees from customers and misrepresented its services. The settlement requires Network 46 to cease operating in Minnesota and provide full refunds to its Minnesota consumers. As a result of the Attorney General’s investigation, Network 46 has ceased operating nationwide.

New Jersey

  • Attorney General Platkin and the Division of Consumer Affairs announced that a now-defunct New Jersey cosmetology school and its related entities have agreed to pay nearly $640,000 – a majority of which will be used for consumer restitution – to resolve the State’s lawsuit alleging they defrauded students and engaged in substandard business practices that financially harmed students. Among other failures, the school did not provide students with Board-mandated books and supplies that were included in the cost of tuition.

New York

  • Attorney General James secured $450,000 in penalties from US Radiology Specialists, Inc. (US Radiology) for failing to protect its patients’ personal and health care data. Their investigation found that US Radiology did not prioritize upgrading its hardware, which left its network exposed to a known vulnerability, leading to a ransomware attack that affected more than 92,000 New Yorkers.

North Carolina

  • Attorney General Stein announced a price gouging ban in effect throughout western North Carolina in response to ongoing wildfires. The attorney general expressed readiness to enforce the ban, recounting 11 lawsuits brought against 27 defendants under North Carolina’s price gouging statute which resulted in 14 judgments or settlements totaling $1,080,000 against 25 defendants, including a $274,000 settlement that was the largest price gouging settlement in the department’s history.

Ohio

  • Attorney General Yost announced a settlement with the organizer of a Kickstarter campaign who collected $31,753 from 101 supporters but didn’t deliver the goods he promised in return for pledges or turn over donations to the charities identified in the campaign. The defendant agreed to pay restitution and civil penalties, and not to conduct any charitable sales promotions or act as a commercial co-venturer for at least five years, after which he must meet certain conditions to regain these privileges.
  • Attorney General Yost announced a suit against a roofing contractor accused of pocketing nearly $45,000 in payments from consumers for whom it did not finish (or in some cases, start) the agreed-upon projects. The complaint alleges that the defendant sold roofing services and new roofs to consumers, accepted deposits from those customers or their insurance companies, then failed to deliver the promised work. The suit further asserts that he didn’t issue refunds, as required by Ohio law, or provide his clients with the legally mandated notice of consumers’ right to cancel their contracts.

Pennsylvania

  • Attorney General Henry announced a settlement with Omni Hotels Management Corporation (Omni) regarding the company’s disclosure of “resort fees” and “drip pricing” — practices that leave consumers with surprisingly larger bills at checkout. Under the settlement, Omni agreed to immediately disclose all fees attached to a stay so consumers can budget responsibly and have the ability to compare prices. The Attorney General has been engaged in broader efforts to hold hoteliers accountable for hidden fees and “drip pricing” — fees added on as consumers progress through the booking process.

Virginia

  • Attorney General Miyares announced that the state of emergency declared in response to wildfires in the western part of the state triggered anti-price gouging laws. He explained that the basic test for determining if a price is unconscionable is whether the post-disaster price grossly exceeds the price charged for the same or similar goods or services during the ten days immediately prior to the disaster.
  • Attorney General Miyares sent a letter to the FDA asking for increased regulation of illegal e-cigarettes and vaporizers. The letter notes that while steps have been taken to restrict youth access to these products, there is no centralized enforcement mechanism or license to hold shops accountable.

Wisconsin

  • Attorney General Kaul announced new legislation to ensure that people convicted of violent offenses related to domestic violence are unable to legally purchase or possess firearms in Wisconsin. The bill reorganizes two statutes—the crime of disorderly conduct and the definition of domestic abuse—so that individuals convicted of disorderly conduct as a result of domestic violence are prohibited from possessing a firearm.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • Twenty-five attorneys general submitted a letter urging the U.S. Food and Drug Administration to strengthen guidance and provide clear warning labels regarding incorrect pulse oximeter readings for patients of color.
  • Attorneys General of Minnesota, California, North Carolina, and Tennessee joined the U.S. Department of Justice’s civil antitrust lawsuit against Agri Stats, Inc., “a company that organizes and manages anticompetitive information exchanges for meat processors across the United States.” The attorney generals noted that consumers in their states have been paying more for than they otherwise would for chicken, pork, and turkey.
  • The first legal action of the bi-partisan Anti-Robocall Multistate Litigation Task Force is against Avid Telecom over its “bombardment” of Americans with billions of illegal robocalls. The lawsuit is led by Ohio, Arizona, Indiana and North Carolina, and joined by 44 other states and the District of Columbia. Attorney General Andrew Bailey of Missouri filed suit against the U.S. Food and Drug Administration and the U.S. Department of Health and Human Services for their approval of shipment of abortion pills by mail. He is joined in the lawsuit by the Attorneys General of Idaho and Kansas.
  • A coalition of fifteen state attorneys general submitted a comment letter supporting the Biden Administration’s proposed rule that establishes extensive staffing requirements for skilled nursing facilities.). California Attorney General Rob Bonta said that, “[e]liminating staff shortages that plague nursing homes is a crucial step to ensuring patients receive the quality care they deserve.” Massachusetts Attorney General Andrea Joy Campbell and New York Attorney General Leticia James are co-leading this effort with General Bonta.

California

  • The California Department of Tax and Fee Administration worked with law enforcement to arraign and file charges against two defendants in a multi-million-dollar embezzlement and tax fraud scheme in San Bernardino County, California. Investigators stated that the embezzlement scheme, which ran from 2018 to 2021, involved one of the defendants stealing from customers in his dealership by placing their high-value vehicles on consignment, and sometimes persuading them to leave their titles at the dealership. Defendant Clayton Thom, who operated a high-end automobile dealership, was allegedly involved in the theft of over $4 million from 35 victims and charged with 37 counts of grand theft and one count of elder theft. Thom and his business manager, Valerie Tanaka, were charged with 13 counts of tax fraud for allegedly defrauding the State of California of more than $4 million in taxes.
  • Attorney General Rob Bonta released the second data report by California’s Department of Justice’s Office of Gun Violence Prevention, which provided in-depth research in the correlation between domestic violence and firearms usage. Several non-profit groups dedicated to gun control noted how California has made significant progress in protecting domestic abuse survivors from gun violence, and that this research publication was the latest step towards preventing domestic abuse by gun violence.

Florida

  • Chargebacks911 must pay $100,000 in civil penalties and $50,000 in legal costs to the State of Florida following Attorney General Ashley Moody’s Consumer Protection Division’s successful settlement. In April, her office and the Federal Trade Commission filed a complaint alleging that Chargebacks911 “sent misleading or inaccurate materials to credit card companies on behalf of clients, including screenshots of websites different than the ones visited by consumers.” 

Massachusetts

  • A series of Dunkin’ Donut franchises were found to violate child labor laws. Three franchisees, who own and operate between them 25 Dunkin’ locations reached a combined settlement of $1 million. The violations include “requiring minors to work more than six hours a day without a meal break, employing a minor after 8:00 pm without an adult supervisor, employment of a minor past the latest permissible hour, employing a minor for more than the maximum numbers allowed in a day, and minors working without a work permit.”

New York

  • Uber will have to pay $290 million in the largest backpay settlement ever won by the New York Office of the Attorney General. The settlement also institutes a minimum driver “earnings floor,” paid sick leave, hiring and earning notices, and other improvements.

North Carolina

  • Attorney General Josh Stein issued a statement regarding the federal lawsuit challenging JetBlue Airways’ proposed acquisition of Spirit Airlines, noting that he would “continue to do everything” in his power to “protect North Carolinians’ ability to fly affordably and conveniently.”

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • 41 attorneys general filed multistate lawsuits against social media company Meta. The lawsuits, in both federal and state courts, allege that the company knowingly designed and deployed harmful features on Instagram and other social media platforms that purposefully addict children and teens while assuring the public that features were safe and suitable for young users. The complaint alleges that the company has violated state consumer protection laws and the federal Children’s Online Privacy Protection Act (COPPA) and seeks injunctive and monetary relief.  The multistate coalition is also investigating TikTok based on a similar set of concerns.
  • Attorneys General Wilson of South Carolina and Nessel of Michigan announced, in partnership with the Commodity Futures Trading Commission (CFTC) and 29 other state regulators, a settlement with precious metals dealer Safeguard Metals, LLC and Jeffrey Ikahn to resolve a federal lawsuit alleging a $68 million fraudulent scheme targeting the elderly. Per the Consent Order, between October 2017 and July 2021, Safeguard and Ikahn deceived customers into purchasing precious metals through false and misleading statements.
  • Attorney General Henry of Pennsylvania is leading a coalition of 13 attorneys general in supporting a federal rule proposal that would mandate railroads make available, in electronic form, information regarding hazardous material loads to emergency responders. The federal rule proposal follows a train derailment in February in East Palestine, Ohio, in close proximity to the Pennsylvania border.
  • A coalition of 18 attorneys general is supporting the District of Columbia’s efforts to restrict the capacity of firearms magazines within the district. The coalition filed an amicus brief in the U.S. Court of Appeals for the District of Columbia Circuit arguing that the law prohibiting possession and sale of large-capacity magazines comports with the Second Amendment of the U.S. Constitution.
  • A coalition of 19 attorneys general submitted an amicus brief in support of a Maryland board of education policy that permits schools to incorporate LGBTQ+ inclusive books into language arts curricula. The Montgomery Board of Education (MCBE) in Maryland is currently facing a challenge that the policy violates free exercise of religion.
  • A coalition of 11 attorneys general is urging the U.S. Department of the Treasury and the Internal Revenue Service (IRS) to adopt enforcement that would protect workers’ rights to prevailing wages on renewable energy and green economy projects where employers claim expanded tax credits. The coalition is formed following a comment letter submitted by several states calling for equitable and efficient implementation of the Inflation Reduction Act in December 2022.

California

  • Attorney General Bonta announced results of an investigation into anti-bias training for pregnancy care providers finding that women of color, particularly black women, die of pregnancy-related complications at much higher rates than white women in California. The investigation was initiated to determine compliance with a 2019 law, the California Dignity in Pregnancy and Childbirth Act (SB 464), which requires health facilities to train prenatal care providers in recognizing and overcoming implicit bias.
  • Attorney General Bonta issued a statement on the first day of trial in the federal lawsuit challenging JetBlue Airways’ proposed $3.8 billion acquisition of Spirit Airlines. The statement alleged that the proposed merger is a “bad deal” for consumers that would force higher fares and fewer options and raises consolidation of the airline industry as a serious concern.
  • Attorney General Bonta announced the unsealing of an indictment and arraignment of Jeffrey H. Tamkin on 110 felony charges and three special allegations for allegedly operating a securities fraud scheme in Los Angeles. The fraud allegedly resulted in a loss of approximately $8 million from multiple victims, many of whom were elderly, between 2010 and 2020. A grand jury in Los Angeles County indicted Tamkin on counts of securities fraud, grand theft, elder theft, money laundering, a fraudulent securities scheme, and aggravated white-collar enhancement.

Michigan

  • Attorney General Nessel filed a lawsuit in the 9th Circuit Court in Kalamazoo County to dissolve American Air Mavericks and seek injunctive relief against American Air Mavericks and agent Roman Choumeliski over alleged fraud committed in the legal establishment of the business and repeated and willful unlawful business practices. The lawsuit alleges that the business used a three-day rental property address when filing LLC formation paperwork with the Michigan Department of Licensing and Regulatory Affairs which constitutes a violation of the Limited Liability Act. The lawsuit also alleges illegal business practices and violations of the Michigan Consumer Protection Act (MCPA) in deceptively representing their geographic origin, making false or misleading statements concerning price reductions, and employing gross discrepancies between oral representations and written agreements covering transactions or failing to provide promised services. The Department seeks civil fines of $75,000 for costs associated with the investigation and litigation of the offenses.
  • Attorney General Nessel filed an Assurance of Voluntary Compliance and Discontinuance in the 6th Circuit Court in Oakland County resolving an investigation into alleged price gouging during a severe ice storm in February 2023 by the Hilton Garden Inn in Novi. The assurance resolves the investigation and potential litigation of alleged violations of the Michigan Consumer Protection Act (MCPA). The Hilton Garden Inn was the subject of an investigation following consumer complaints. As a result of the assurance, the Department of the Attorney General and all consumers who paid excessive rates will receive refunds.
  • Attorney General Nessel issued a formal opinion concluding that contractual assessments imposed by local governments under the Property Assessed Clean Energy (PACE) Act are considered special assessments by the local government and treated in a similar manner as real estate taxes as property.

New Jersey

  • Attorney General Matthew J. Platkin announced that the Division of Civil Rights (DCR) has entered into a Consent Order and Decree resolving a complaint alleging that Mercer County Community College discriminated against an employee who contracted COVID-19 by firing the employee rather than extending medical leave or allowing remote work. Under the consent order, the college will be required to rehire the complainant and pay $50,000 as compensation for lost wages and benefits and damages for pain and suffering. The consent order also requires the College to ensure that its policies and practices comply with the New Jersey Law Against Discrimination (LAD).

New York

  • Attorney General James announced an agreement to end anti-worker practices by First American Financial Corporation. An investigation discovered that First American and its competitors entered into illegal no-poach agreements where they would not solicit each other’s employees. As a result of the agreement, First American will terminate any existing agreements, pay $4.5 million to the state, and cooperate with ongoing investigations.
  • Attorney General James announced the results of an investigation into Dr. Mark Mohrmann and his practice, Highline Orthopedics, that found that the doctor and his wife worked to suppress negative reviews and inflate positive reviews on numerous websites. As a result of an agreement, Dr. Mohrmann and his wife are required to take down all false positive reviews and must pay $100,000 in penalties.
  • Attorney General James filed a lawsuit against Gemini Trust Company LLC, Genesis Global Capital, Digital Currency Group, Michael Moro, Barry E. Silbert, and a pair of other Genesis entities. The lawsuit argues that the firms lied to customers about the investment program, “Gemini Earn,” which caused at least 232,000 individuals to suffer losses in excess of $1 billion.

Ohio

  • Attorney General Yost filed a lawsuit in Franklin County Common Pleas Court alleging that Chris Rivera, owner of Orlando-based Myriad Capital Management, collected debt from Ohio consumers using multiple business names resembling law firms in an effort to convince consumers that lawsuits would be filed if they did not pay the debts. The lawsuit alleges that these actions were violative of Consumer Sales Practices under the Consumer Sales Protection Act and seeks to recover consumer damages, civil penalties of $25,000, and a permanent injunction.

Oklahoma

  • Attorney General Drummond announced that an Oklahoma contractor, Benjamin Moore, who did business as Moore Construction, was charged with nine counts of felony embezzlement and a pattern of criminal offenses following an investigation revealing that he had allegedly taken nearly $85,000 from nine customers for construction projects that were never completed.

Virginia

  • Attorney General Miyares released an advisory opinion on property tax assessment of real property that was operated in whole or in part as an affordable rental property. The opinion addresses whether assessors comply with state law by reviewing only the property’s income and expenses statement and assessments of affordable housing property generally.
  • Attorney General Miyares announced an investigation into AJP Educational Foundation, Inc., also known as American Muslims for Palestine, for potential violations of Virginia’s charitable solicitation laws. The investigation seeks to uncover whether the organization was soliciting contributions without having first registered with the Commissioner of the Virginia Department of Agriculture and Consumer Services and whether the organization was using funds raised for impermissible purposes under state law including benefitting or providing support to terrorist organizations.

Washington

  • Attorney General Ferguson announced that he won a court order to shut down websites and suspend internet domains of two businesses and their owner that had sent hundreds of thousands of deceptive texts and emails targeting Washington businesses and nonprofits. The large-scale text and email scheme had cost Washington businesses at least $228,000 and directed businesses to websites where they were charged $200 to file annual reports with the Secretary of State. The websites did not disclose that businesses can file required reports for $60. Other solicitations demanded between $150 and $175 to file annual meeting minutes although Washington does not require such a filing.

West Virginia

  • Attorney General Morrisey sent a letter to the NCAA urging officials to reverse their decision and grant RaeQuan Battle a transfer waiver so that he may play basketball for West Virginia University. The letter stated that the NCAA’s choice to arbitrarily limit student choice through transfer guidelines raises significant antitrust concerns.

Wisconsin

  • Attorney General Kaul announced a $150,000 settlement with ChemDesign Products, Inc. resolving a civil environmental enforcement action alleging violations of the company’s air pollution control permit at the toll chemical manufacturing facility in Marinette, Wisconsin. The complaint alleged six violations of the facility’s permit relating to emissions of hazardous and volatile chemicals.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A bipartisan coalition of 50 state attorneys general announced a settlement with ACI Worldwide Corporation (ACI), a payment processing company, resolving allegations that the company erroneously attempted to collect $2.3 billion in mortgage payments from homeowners. According to the settlement, ACI is required to pay $10 million to the states and to avoid similar incidents in the future, including by using artificially-created data rather than real consumer data when testing systems or software, and segregating any testing or development work from its consumer payment systems.
  • A coalition of 41 state attorneys general announced the settlement of a multistate investigation into Tompoe, LLC, a financing company that partnered with retail stores to offer consumers leases for retail goods. The settlement resolves allegations that the company engaged in deceptive advertising and leasing practices, such as, omitting certain disclosures and designing complex leases that confused consumers. The settlement requires the company to allow consumers to keep the products they leased without further financial obligations, amounting to approximately $33 million nationwide. The company is also prohibited from providing credit-reporting agencies with negative information about consumers who leased from it.
  • A coalition of 33 state attorneys general announced the filing of a lawsuit against Meta alleging that the company knowingly designed and deployed harmful features on Instagram and other social media platforms that purposefully addict children and teens. The complaint also alleges that Meta falsely assured the public that these features are safe and suitable for young users.

California

  • California Attorney General Rob Bonta announced the filing of a notice of appeal to overturn a preliminary injunction that would block a children’s online safety law—the California Age-Appropriate Design Code Act—from going into effect. AB 2273 prohibits companies that provide online services, products or features likely to be accessed by children from using a child’s personal information; collecting, selling, or retaining a child’s geolocation; profiling a child by default; and leading or encouraging children to provide personal information. The preliminary injunction was granted by the U.S. District Court for the Northern District of California on September 18, 2023, and is on appeal to the U.S. Court of Appeals for the Ninth Circuit.

New Jersey

  • New Jersey Attorney General Matthew J. Platkin along with the Division of Consumer Affairs announced a settlement with Sollers, Inc., doing business as Sollers Education, LLC, a for-profit school, along with its founder and president. The settlement resolves allegations that the school used false and misleading job advertisements to funnel students into its high-cost information technology programs, and also falsely claimed that Income Share Agreements that required students to pledge a portion of their future income in exchange for upfront money to pay for the programs were not loans and would not create debt. The settlement requires the defendants to cancel approximately $3.4 million in student debt and to pay $1.2 million in civil penalties. 

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A bipartisan coalition of 50 state attorneys general announced a settlement with software company Blackbaud after a 2020 ransomware attack which resulted in the exposure of highly sensitive information. The settlement requires Blackbaud to revamp its data security and breach notification practices as well as to pay the states $49.5 million.
  • A bipartisan coalition of 50 state attorneys general announced a $10 million settlement with ACI Worldwide, a payment processing company. A testing error in 2021 resulted in more than one million unauthorized withdrawals, and attempted withdrawals of over $2 billion from mortgage holders. ACI Worldwide was a third-party vendor for Nationstar Mortgage (known publicly as Mr. Cooper) when the mortgage-holder withdrawals occurred in April 2021. An investigation found that the processing error was caused by material defects in ACI Worldwide’s privacy and data security procedures and infrastructure of the payment platform. The settlement will require ACI Worldwide to use artificial data, as opposed to real consumer data, when testing software systems and to segregate testing and development work from actual consumer payments.
  • A bipartisan coalition of 33 state attorneys general announced a settlement with healthcare clearinghouse Inmediata for disclosing the protected health information of approximately 1.5 million consumers nationwide. The settlement requires Inmediata to pay $1.4 million and comprehensively restructure its data security and breach practices, specifically requiring incident response procedures and annual third-party security assessments. In January of 2019, the federal government alerted Inmediata that sensitive patient information maintained by the company was publicly accessible online for download. Despite the warning, Inmediata did not alert their consumers for over three months, and when Inmediata finally alerted consumers, the notice was unclear and confusing. The attorneys general found that Inmediata violated various consumer protection laws, breach notification laws, and HIPPA.
  • A coalition of 13 state attorneys general filed an amicus brief in the District of Massachusetts objecting to a Massachusetts law that makes it illegal to sell or ship pork products through Massachusetts that do not meet strict housing requirements for hogs. The coalition is arguing that the law will raise pork prices and harm farmers, and that it violates the Dormant Commerce Clause, the Import-Export Clause, and the Full Faith and Credit Clause of the U.S. Constitution.
  • A coalition of 13 state attorneys general sent a comment letter in support of the U.S. Environmental Protection Agency’s proposed rule to raise dust-lead hazard standards and post-abatement clearance levels under the Toxic Substances Control Act. The coalition believes the proposed regulations will be beneficial to public health.  
  • The attorneys general of Georgia, New Jersey, and New York announced a civil complaint filed against Fresenius Vascular Care and its executive and affiliates for allegedly subjecting Medicare and Medicaid recipients suffering from end-stage renal disease to unnecessary and dangerous surgeries, and for defrauding both healthcare programs. Among other things, the lawsuit seeks treble damages and penalties.
  • A coalition of 21 state attorneys general, led by Tennessee Attorney General Skrmetti, filed a public comment letter opposing the Department of Energy’s proposed efficiency standards for consumer boilers under the Energy Policy and Conservation Act. The letter highlights several key issues with the standards, such as reliance on social-cost estimates and procedural rulemaking factors. More broadly, the letter highlights concerns related to the cumulative impact of the standards on the electric grid and American businesses. The letter argues that the standards violate Executive Order 13,132 by disregarding constitutional federalism principles.  
  • A coalition of 21 state attorneys general, led be California Attorney General Bonta, sent a comment letter to the National Highway Traffic Safety Administration (NHTSA) in support of its proposal to strengthen corporate average fuel economy standards for passenger cars and light trucks for model years 2027-2032. The coalition applauded NHTSA’s proposal to adopt the enhanced standards for upcoming model years, potentially resulting in vehicles averaging 58 miles per gallon by 2032. The NHTSA announced its proposal on July 28, 2023.

Arkansas

  • Arkansas Attorney General Griffin issued an advisory to solar industry actors, reminding them of their obligations under the state’s Deceptive Trade Practices Act. The press release about the advisory states that it warns these companies against engaging in deceptive trade practices, which could include “predatory sales tactics; delivering false information regarding tax rebates, credits and government-funded grants; and installing systems improperly or contrary to specifications in contracts, or not installing them at all.”

California

  • California Attorney General Bonta announced that state Senate Bill 478, which he sponsored, was being signed into law by Governor Newsom. The new law will ban hidden fees (or “junk fees”) in California as of July 1, 2024. The press release explains that “junk fees” are considered to be those “in which a seller uses an artificially low headline price to attract a customer and usually either discloses additional required fees in smaller print or reveals additional unavoidable charges later in the buying process.”
  • California Attorney General Bonta announced that state Assembly Bill 1366, which he sponsored, was being signed into law by Governor Newson. The new law will establish a Victims of Consumer Fraud Restitution Fund in the state Treasury that will be funded through payments made by businesses that violate consumer protection laws. The fund will then be used to make victims of consumer fraud whole. The bill will take effect on January 1, 2024.

Florida

  • Florida Attorney General Moody filed a complaint against a Gulf Coast pool company, Cox Pools of the Gulf Coast, LLC, and its owner for alleged deceptive business practices. The complaint claims that Cox Pools misrepresented the timeline for construction and refused to issue refunds for unfinished or incomplete work. The action seeks to permanently ban the defendants from engaging in specific business activities related to pool construction and seeks a monetary judgment of more than $250,000 due to enhanced civil penalties for violating the Florida Deceptive and Unfair Trade Practices Act. Attorney General Moody’s investigation found that Cox Pools had made misrepresentations to more than 25 customers amounting to $1.5 million in pool construction services.

Michigan

  • Michigan Attorney General Nessel sent a letter to the Michigan Public Service Commission asking it to investigate DTE Energy’s eBill program and other utilities’ similar programs if they exist. According to the press release, the eBill program automatically enrolls consumers in the paperless billing program without their affirmative consent. Attorney General Nessel notes that DTE should be required to provide negatively affected consumers with refunds.
  • Michigan Attorney General Nessel announced that the Michigan Public Service Commission determined that Consumers Energy Company may not charge electric customers for some energy replacement costs after an outage that was due to contractor error. The press release states that Attorney General Nessel’s participation in the related litigation has saved consumers more than $2 million.

Minnesota

  • Minnesota Attorney General Ellison announced a settlement with nonprofit corporation The Kitchen Kingz Corporation, requiring its president to pay back about $20,000 in misused funds as well as shutting down the company and banning its president from operating a charity. The settlement resolves allegations that the company operated a fraudulent recycling program whereby it offered to recycle high-end kitchen and home goods, but actually kept the proceeds from selling these goods.
  • Minnesota Attorney General Ellison announced a settlement with Docupros, a San Diego, California based student-loan debt-relief company, resolving claims that the company illegally collected fees from customers and misrepresented its services to consumers. The settlement requires Docupros to cease operating in Minnesota and to provide full refunds to all Minnesota consumers, roughly $18,000. Docupros is one of fifty-two student-loan debt-relief companies that Attorney General Ellison is investigating for suspected violations of Minnesota law. Docupros allegedly made false promises to consumers regarding student-loan forgiveness and profited based on exorbitant fees for enrollment services. Docupros was operating without registering as a debt-settlement service provider, which is required in Minnesota. This is the fourteenth student-loan debt-relief company that the Minnesota Attorney General office has shut down.

New York

  • New York Attorney General James, alongside Governor Hochul, Senator Gounardes, and Assembly member Rozic, announced new legislation to limit social media features harmful to teen mental health and prevent collection of children’s personal data. The legislation is meant to combat mental health issues among vulnerable children after dramatic increases of those concerns in recent years, such as increased rates of depression, anxiety, suicidal ideation, and self-harm. The two bills are the Stop Addictive Feeds Exploitation (SAFE) for Kids Act (S7694/A8148) and the New York Child Data Protection Act (S7695/A8149). The former will only impact social media platforms with feeds comprised of user-generated content, but the latter will prohibit all online sites from collecting, using, sharing, or selling personal data of anyone under the age of 18 for the purposes of advertising without informed consent.

Pennsylvania

  • Pennsylvania Attorney General Henry announced a settlement with Rutter’s, a York-based convenience store chain, resolving claims related to cybersecurity attacks that exposed the information of more than one million customer payment cards. The cybersecurity attacks occurred over a nine-month period from 2018 to 2019 and involved 79 store locations. Attorney General Henry’s investigation determined that Rutter’s failed to properly employ reasonable data security measures to protect consumers’ personal information in violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law. Rutter’s agreed to pay $1 million in the settlement and to improve consumer related security measures, including the maintenance of an information security program, password management, log monitoring policies, a software update, and removing defunct accounts. The exact number of impacted consumers and total fraudulent transactions is unknown.

Washington

  • Washington Attorney General Ferguson announced a more than $2 million recovery from multiple debt adjusters that engaged in unfair and deceptive practices against student borrowers, including by unlawfully charging tens of thousands of dollars in excessive fees. In 2023, Attorney General Ferguson resolved three cases against out-of-state debt adjusters who will be required to pay approximately 500 Washingtonian borrowers almost $360,000 in restitution. In total, Attorney General Ferguson has resolved cases against 35 entities.  

Wisconsin

  • Wisconsin Attorney General Kaul announced that the state obtained a consent judgment against timeshare exit company Nationwide Transfer, LLC and its owners, resolving allegations that the company violated the law with its misleading advertising. The consent judgment includes a permanent injunction, consumer restitution, civil forfeitures, and costs.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 18 state attorneys general and two separate organizations filed amicus briefs in support of Montana’s SB 419 law which bans TikTok from operating in the state. The law, written by Montana Attorney General Austin Knudsen, requires TikTok to stop operating in Montana and prohibits mobile application stores from making TikTok available for download starting on January 1, 2024. Shortly after Governor Greg Gianforte signed SB 419 into law, the company and a group of users filed suit and moved for a preliminary injunction.
  • A coalition of 19 state attorneys general urged the Biden administration to take action to protect student loan borrowers as payments resume nationwide, with a letter detailing concerns about student loan servicers’ abilities to support borrowers as student loan payments restart.
  • A coalition of 23 state attorneys general filed a letter with the Federal Trade Commission, supporting a new rule aimed at stopping fake and deceptive consumer reviews that influence consumers to make purchases.  In the letter, the Attorneys General support the proposed Trade Regulation Rule on the Use of Consumer Reviews and Testimonials.
  • Oral arguments were held for Consumer Financial Protection Bureau v. Community Financial Services Association of America Ltd. Earlier this year, a coalition of 16 attorneys general filed an amicus brief asking the Supreme Court to reverse the Fifth Circuit’s ruling and maintain the Consumer Financial Protection Bureau’s existence.

Illinois

  • Illinois Attorney General Kwame Raoul filed a lawsuit against Residents Energy LLC, an alternative retail electric supplier, alleging that the company’s telemarketers and in-person sales agents used deceptive and unfair tactics to switch customers from their public utility company to more expensive contracts with Residents.

Massachusetts

  • Massachusetts Attorney General Joy Campbell publicized that Sapna Khatri will lead the office’s Reproductive Justice Unit, which will focus on expanding and protecting access to reproductive and gender affirming care, addressing disparities in maternal health, tackling misinformation and disinformation that prevents access to care, working across state lines to respond to national attacks on reproductive health care, and championing and defending Massachusetts’ legal protections for reproductive rights.

North Carolina

  • North Carolina Attorney General Josh Stein asked North Carolinians in western North Carolina to file complaints with his office if they are being affected by the lack of certain cancer treatments for adults with leukemia and lymphoma at Mission Hospital in Asheville. Attorney General Stein is investigating Nashville-based HCA Healthcare over concerns that HCA may not be meeting the agreements it made when it purchased Mission.
  • Attorney General Stein also demanded that HCA Healthcare explain decreases in cancer services—informing HCA that it might be in violation of the agreement it signed with the Attorney General’s Office when purchasing Mission Hospital.

Oregon

  • Oregon joined nine other states in suing the Environmental Protection Agency for failing to take timely action on regulating wood stove emissions. The Complaint, which was filed in the Federal District Court in Washington, D.C., explains that, “although it has some intermediate goals, EPA has stated that it does not plan to finalize a new [standard] for residential wood heaters until November 30, 2027—more than 12 years after the 2015 New Source Performance Standards (NSPS) for greenhouse gas emissions were issued under the Clean Air Act. Moreover, EPA asserts that the November 30, 2027 date is only aspirational, as EPA ”do[es] not have hard deadlines for reaching these milestones[.]”

Washington

  • Washington Attorney General Bob Ferguson publicized the five members of his office’s new Truth & Reconciliation Tribal Advisory Committee. The committee will study how Washington state can address the harms caused by the government’s historical role in the shameful legacy of Indian boarding schools.
  • A King County Superior Court judge ordered a Seattle business preying on new immigrants to pay restitution, interest and civil penalties totaling approximately $230,00 as a result of Washington Attorney General Bob Ferguson’s lawsuit.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 11 attorneys general led by Massachusetts Attorney General Andrea Joy Campbell sent a letter to Congress urging that they protect the Inflation Reduction Act by rejecting cuts proposed by House Republicans that threaten the IRA’s ability to significantly reduce greenhouse gas emissions and create environmentally sustainable jobs.
  • Two coalitions of 19 state attorneys general, led by New York Attorney General Letitia James, submitted comments in support of the U.S. Department of Justice (DOJ) and the Federal Trade Commission’s (FTC) proposed revisions to strengthen the Merger Guidelines. The first set of comments support the DOJ and FTC’s classification of a broader spectrum of mergers as presumptively anticompetitive and their raising the standards of proof required for defenses raised by the merging parties. The coalition also suggests clarifying certain passages in the Guidelines or providing more detailed discussions of the legal and evidentiary standards that FTC and DOJ are planning to apply to facilitate better understanding by merging parties, enforcers, and the general public. The second set of comments supports the DOJ and FTC’s decision to expressly state that antitrust laws protect competition in labor markets, which will help protect workers’ wages especially in rural markets and in concentrated industries like healthcare. The coalition also writes in support of the agencies’ new guidelines to examine not only the merging firms’ power to affect wages, but also their ability to impact workers’ benefits and working conditions.

California

  • California Attorney General Rob Bonta announced a settlement with Biora Therapeutics, Inc., a biotechnology company, resolving allegations that it violated consumer protection laws by making misleading claims regarding the costs of its genetic testing services when advertising to healthcare providers and patients. According to the settlement, Biora will pay $200,000 in penalties and waive all outstanding debts of California consumers. The company is also restricted from marketing and advertising for three years.

Ohio

  • Ohio Attorney General Dave Yost announced a lawsuit against DBA Hamilton Construction, a home-improvement contractor, and its owner for allegedly accepting payments from customers but failing to deliver most of the promised goods or services within eight weeks, as required by Ohio law. The action seeks injunctive and monetary relief.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A multistate coalition of 22 state attorneys general, led by Tennessee Attorney General Skrmetti, sent a warning letter to the Net Zero Financial Service Providers Alliance (NZFSPA) stating their coordinated commitments may violate state and federal antitrust and consumer protection laws. The NZFSPA is a collection of financial service firms that have pledged to “accelerate the transition towards global net zero greenhouse gas emissions.” The letter warns NZFSPA members that collusion to limit consumer choice or manipulate market outcomes, especially among direct competitors, may be violative of state antitrust and consumer protection laws. The letter suggests NZFSPA members are necessarily acting to artificially restrict supply, restrain trade, inhibit innovation, suppress output, and harm consumers. The letter seeks additional information from NZFSPA.
  • A multistate coalition of 18 state attorneys general filed an amicus brief in support of the State of Montana’s law banning the app TikTok. The brief praised Montana’s action to protect its citizens’ privacy from TikTok’s relationship with China and the Chinese Communist Party and its citizens’ wellbeing from the physical and mental health detriments associated with use of the app.
  • A multistate coalition of 19 state attorneys general, led by California Attorney General Bonta, submitted a comment letter to the United States Department of Justice and Federal Trade Commission regarding the agencies’ proposed revisions to the Merger Guidelines. The Merger Guidelines serve as guidance for state enforcers considering mergers and acquisitions. The comment letter commends the agencies for seeking to strengthen the Merger Guidelines and ultimately federal and state merger enforcement.

California

  • California Attorney General Bonta announced a lawsuit against Exxon Mobil, Shell, Chevron, ConocoPhillips, and the American Petroleum Institute for allegedly engaging in a ‘decades-long campaign of deception’ and statewide climate change-related harms. The Complaint asserts that the companies have known since at least the 1960s that burning fossil fuels would warm the planet and affect the climate but denied climate change in public remarks and marketing. The six causes of actions asserted in the Complaint are 1) public nuisance, 2) damage to natural resources, 3) false advertising, 4) misleading environmental marketing, 5) unlawful, unfair, and fraudulent business practices, and 6) products liability. The lawsuit seeks civil penalties and nuisance abatement via the creation of a fund to finance climate mitigation and adaptation efforts, as well as injunctive relief to prevent further misleading advertisings about fossil fuels.

Indiana

  • Indiana Attorney General Rokita announced a lawsuit against IU Health and IU Healthcare Associates for failure to properly report, review, and enforce HIPAA violations. IU Health has had numerous instances where it failed to implement or enforce privacy policies or sanctions against physicians, including instances that had to be reviewed by the Indiana Medical Licensing Board. The lawsuit consists of seven counts and specifically includes violations of Indiana’s Deceptive Consumers Sales Act based on the ongoing HIPPA and privacy violations.

Iowa

  • Iowa Attorney General Bird announced a lawsuit against Biologics Health, LLC, Summit Partners Group, LLC, Rylee Meek, and Scott Thomas for allegedly engaging in fraudulent door-to-door stem cell therapy treatments. The lawsuit addresses the defendants’ false advertisements and misleading claims regarding the effectiveness of their stem cell therapy services. The lawsuit alleges over 250 Iowans were sold fraudulent stem cell therapies, totaling over $1 million dollars. The lawsuit alleges violations of the Iowa Consumer Fraud Act and seeks restitution, civil penalties, and a permanent injunction.

New Hampshire

  • New Hampshire Attorney General Formella announced a court order granting a preliminary injunction against Cory Spencer, the former lead contractor for PHX Remodeling and currently d/b/a “NHcustommade4u.” The preliminary injunction temporarily enjoins Spencer from owning or operating any construction business and collecting any consumer prepayment or deposit while conducting trade or commerce within New Hampshire. The preliminary injunction remains in effect while the case is ongoing. The complaint against Spencer alleges 13 violations of New Hampshire’s Consumer Protection Act, mostly regarding instances where Spencer did not complete contracted work and provided no refund to consumers. The lawsuit seeks restitution and $130,000 in civil penalties.

New York

  • New York Attorney General James announced a lawsuit against Vantage Travel Services, Inc. and its owner, Henry R. Lewis, for failing to refund consumers after their tours were cancelled. Vantage is a Massachusetts-based travel company that offers cruises for locations worldwide. The lawsuit alleges deceptive business practices based on the company’s failure to honor its refund policy and for mischaracterizing trip cancellations as postponements. Vantage allegedly owes thousands of dollars to more than 100 New Yorkers. The lawsuit seeks full restitution, disgorgement, and civil penalties.

Ohio

  • Ohio Attorney General Yost announced a lawsuit against Ohio Mega Group, a used car dealership, and its owner, Dominic Wiley, for allegedly rolling back odometers and selling salvaged vehicles without proper notice to customers. This is the fourth used car dealership that Attorney General Yost has sued under similar allegations of odometer tampering this year. The lawsuit seeks restitution, civil penalties, and an injunction.  
  • Ohio Attorney General Yost announced that three former executives of the Columbus Zoo and Aquarium were indicted for their roles in a scheme to defraud the zoo of almost $2.3 million dollars. Former Chief Executive Officer Tom Stalf and former Marketing Director Pete Fingerhut are accused of operating a criminal enterprise to steal money from the zoo and colluding to conceal their theft. Further, former Chief Financial Officer Greg Bell is also accused of involvement within the enterprise. The three former executives collectively are charged with more than 100 felony counts.

Pennsylvania

  • Pennsylvania Attorney General Henry announced a lawsuit against Joseph F. John and Joseph F. John II for alleged illegal treatment of tenants or consumers with ‘rent to own’ agreements at more than fifty homes across two counties. The lawsuit alleges the homes are in disrepair with issues such as missing pipes, missing appliances, leaking roofs, damaged windows, insect infestations, malfunctioning plumbing, among other issues. Further, the landlords allegedly charged unlawful late fees and interest rates. The Office of the Attorney General is seeking restitution for the tenants, as well as civil penalties and a permanent injunction.
  • Pennsylvania Attorney General Henry announced a settlement with landlord, Legacy Realty & Property Management, LLC, which allegedly charged college student tenants unlawful administrative fees attached to security deposits. The Office of the Attorney General filed a lawsuit against Legacy on July 8, 2019 for violations of the Landlord Tenant Act and Unfair Trade Practices and Consumer Protection Law. Under the settlement, Legacy agreed to close its business and pay $17,500 in restitution to consumers.

Tennessee

  • Tennessee Attorney General Skrmetti filed a motion to compel TikTok to comply with a prior court order requiring it to produce relevant evidence in response to Tennessee’s investigation of TikTok’s possible violation of Tennessee’s consumer protection laws. This action is part of a larger nationwide, bipartisan investigation into whether TikTok engaged in deceptive, unfair, and unconscionable conduct that harmed the mental health of TikTok users, particularly children and teens. TikTok allegedly failed to comply with the Agreed Order by not providing a knowledgeable witness who could testify about the events leading up to TikToks’s destruction of evidence. The original motion was supported by 47 state attorneys general.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A bipartisan coalition of attorneys general from all 50 U.S. states, the District of Columbia, and Puerto Rico announced a preliminary agreement with a multinational technology company, resolving one of three antitrust lawsuits against the company. The agreement will be finalized in the next 30 days.
  • A coalition of 15 state attorneys general sent a letter to U.S. SEC Chair Gensler, asking the SEC to require any foreign-owned company to independently certify that it is complying with the Tariff Act of 1930’s provision forbidding the importation of products made using forced labor. The letter relates to fashion retailer SHEIN’s potential Initial Public Offering and accusations that the company uses forced labor to make its products.
  • A multistate coalition of attorneys general announced an agreement in principle with grocery store chain Kroger. The settlement requires Kroger to pay $1.37 billion for its role in the opioid epidemic.
  • A multistate coalition of 42 attorneys general announced a $35 million settlement with Tempoe, LLC, resolving allegations that the company misled consumers into thinking they were entering a credit sale or installment plan when they were actually signing a lease agreement under which they paid significantly more than the purchase price of the product or service. The settlement also permanently bans Tempoe from offering consumer leasing services and cancels all existing leases.

California

  • California Attorney General Bonta announced a lawsuit against nine hemp companies for selling illegal inhalable hemp goods in violation of Assembly Bill 45, failing to include Proposition 65 warnings, and engaging in unfair business practices. The lawsuit seeks to prevent the companies from selling illegal products as well as from selling goods without the proper warnings. It also seeks damages and civil penalties.
  • California Attorney General Bonta sent a letter to several U.S. federal agencies, asking them to regulate medical payment products like medical credit cards and installment loans. Some of the proposed regulations include designating medical credit card debt as medical rather than consumer debt, proper screening for financial aid and charity care, and limiting enrollment in provider offices.

Illinois

  • Illinois Attorney General Raoul announced a settlement with Newly Weds Foods, Inc., resolving allegations that the company’s Chicago bakery exceeded allowed emissions and production limits and did not timely conduct and report emissions testing. The settlement includes a $755,000 civil penalty and requires the company to undergo emissions testing.

Michigan

  • Michigan Attorney General Nessel announced a lawsuit against Gerald R. Ford International Airport Authority, alleging that it created PFAS releases into the water supply. The lawsuit, which follows warnings and demands from the Michigan Department of Environment, Great Lakes, and Energy, seeks injunctive and declaratory relief, costs, and damages.
  • Michigan Attorney General Nessel announced an Assurance of Discontinuation against Golden Hearts Games, Inc., which was offering online gambling games to consumers in Michigan without proper licensing. The agreement requires the company to stop offering gambling services to consumers in the state.

Minnesota

  • Minnesota Attorney General Ellison announced that his office has begun investigating 52 student loan debt relief companies that are suspected of acting illegally. Specifically, Attorney General Ellison believes these companies are offering debt-settlement services without registering in Minnesota and are violating consumer protection law by misrepresenting their services and prices and making false promises of student-loan forgiveness, which only the federal government can provide.

New Hampshire

  • New Hampshire Attorney General Formella announced court approval of a settlement with Erica Blizzard and Blizzard Inc. d/b/a Lakeport Landing Marina, resolving allegations of Underground Storage Tank Act violations at a marina stemming from a severed fuel line. The settlement includes a $100,000 civil penalty.

New York

  • New York Attorney General James announced an agreement with insulin manufacturer Novo Nordisk Inc., under which the company will cap the price of insulin at $35 per month for uninsured consumers in the state for five years. The agreement also includes a consumer notification program about the capped price.

North Carolina

  • North Carolina Attorney General Stein asked recently closed furniture retailers, Mitchell Gold + Bob Williams and Klaussner Furniture, to help former employees in any way they can after their sudden closures. Specifically, the letter asks the companies to work with the state and local governments to provide resources to employees as well as to be mindful of their responsibilities to the environment and to consumers.

Pennsylvania

  • Pennsylvania Attorney General Henry announced a lawsuit against dental group Infinity Dental Management, LLC and its owner and an employee, alleging that it misled patients into obtaining loans and failed to provide them notice of their rights and protections. The lawsuit seeks to ban the company from offering dental and credit services in the state, as well as civil penalties and consumer restitution.
  • Pennsylvania Attorney General Henry announced a settlement with online personality Dana Chanel and related companies, resolving allegations that the companies misled consumers and failed to deliver credit repair and mobile app services. The settlement bans the defendants from selling or advertising credit repair and mobile app services as well as requires them to pay restitution, legal costs, and civil penalties.

Virginia

  • Virginia Attorney General Miyares announced an $80 million settlement agreement with Monsanto Co. for environmental contamination in the state caused by polychlorinated biphenyls (PCBs). The settlement sums are to be used for restitution and remediation.

Washington

  • Washington Attorney General Ferguson announced a lawsuit against nonprofit Noble Foundation and associated individuals, alleging that the entity failed to account for $1 million in charitable grants to serve communities of color since 2019. Among other remedies, the lawsuit asks the court to order the defendants to return the diverted sums, to bar them from serving on the boards of future Washington nonprofits, and to dissolve the foundation.