Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.
- A coalition of 50 state attorneys general, Puerto Rico, and the District of Columbia announced a settlement against global pharmaceutical company Mallinckrodt, resolving allegations that from January 2013 until June 2020 it violated state and federal law by knowingly underpaying Medicaid rebates for H.P. Acthar Gel. The settlement includes a $233.7 million payment.
- A coalition of 24 state attorneys general filed comments about a U.S. Securities and Exchange Commission initiative, which would mandate that companies make disclosures about greenhouse gas emissions and how the risk of climate change affects their businesses. The attorneys general are arguing that the disclosures are not related to financial performance and would impose significant burden on the affected companies.
- A coalition of 20 state attorneys general also commented in support of the above U.S. Securities and Exchange Commission initiative. The coalition is arguing that the required disclosures are essential to protect financial systems both in the U.S. and globally against risk associated with climate change and to safeguard investors.
- Arizona Attorney General Brnovich announced that his office filed a lawsuit against two Midas locations after undercover investigations allegedly revealed that they charged for unnecessary services and did not perform some of these services. The lawsuit seeks restitution, civil penalties, injunctive relief, and fees and costs.
District of Columbia
- Washington D.C. Attorney General Racine filed a civil rights lawsuit against the District of Columbia Housing Authority, alleging that the agency discriminated against individuals with disabilities and failed to provide needed accommodations for public housing tenants, such as transfers to wheelchair accessible units.
- Massachusetts Attorney General Healey announced that former outpatient behavioral health provider Pathways of Massachusetts and its former corporate parent Molina Healthcare, Inc. must pay $4.6 million to resolve false claims allegations. The company allegedly caused fraudulent claims to be submitted to MassHealth for behavioral health services provided by improperly supervised and unlicensed staff members.
- Massachusetts Attorney General Healey announced that her office filed a lawsuit against nursing home Sea View Retreat, Inc. and its owner. The lawsuit alleges that the defendants did not comply with state and federal laws, regulations, and rules required to protect residents from COVID-19, from February to June 2020.
- Massachusetts Attorney General Healey released guidance to help residents and small business owners who are considering solar energy. Part of the guidance is intended to help them avoid “consumer pitfalls” when entering contracts.
- New Jersey Acting Attorney General Platkin announced that the New Jersey Bureau of Securities issued a Summary Cease and Desist Order to National Realty Investment Advisors, LLC and related entities and individuals, after it determined that the company fraudulently sold $630 million or more in securities.
- New York Attorney General James issued a consumer alert reminding New Yorkers of the Gas Tax Holiday Act of 2022, which requires gas stations to suspend excise tax, prepaid sales tax, and state sale and use taxes on motor and highway diesel motor fuel to address rising prices.
- Pennsylvania Attorney General Shapiro announced that his office filed a lawsuit against home improvement company Curtis Total Service, Inc. and two associated individuals. The lawsuit alleges that the company engaged in misleading sales practices to induce consumers to purchase unnecessary home improvements and misled consumers about cancelling contracts.