Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. See our State Attorneys General page for more insights. Here are last week’s updates.
Multistate
- Ohio Attorney General Yost and Kansas Attorney General Kobach are asking the U.S. Supreme Court to issue an emergency stay of a new Environmental Protection Agency rule issued under the Clean Air Act. The attorneys general argue that the rule, which requires coal-fired power plants to capture and store 90% of carbon emissions or shut down in the next eight years, is unreasonable, not authorized by law, and will cause the states irreparable harm.
California
- California Attorney General Bonta announced that his office filed a stipulated judgment against in-home care companies CK Franchising, Inc. and SDX Home Care Operations, LLC (known as Comfort Keepers), resolving allegations that the companies engaged in unfair competition under California Business & Professions Code section 16600 by using illegal “no-hire” and non-solicitation clauses with employees. The stipulated judgment also notes that the defendants included a burdensome liquidated damages provision in client care agreements related to damages for hiring former Comfort Keepers employees. The stipulated judgment requires Comfort Keepers to pay $500,000 in civil penalties and imposes injunctive terms removing and barring the illegal contractual provisions.
- California Attorney General Bonta announced a settlement with Mead Johnson Nutrition Co. and Mead Johnson & Co., LLC, resolving allegations that the companies sold infant and toddler formulas without requisite warnings about lead exposure, which violated Proposition 65 and California Unfair Competition Law. Under the settlement, Mead Johnson must pay almost $2 million, including civil penalties, attorneys’ fees and costs, and funding for an environmental project intended to reduce other sources of lead exposure.
- California Attorney General Bonta announced a settlement with Western Valley Meat Company, an affiliate of Central Valley Meat, alleviating anticompetitive concerns raised by its contemplated purchase of Cargill, Inc.’s culled cattle slaughter and processing plant. The settlement requires Western Valley Meat to, upon acquiring the plant, keep it operating for at least a year and retain at least 700 employees during that time.
Illinois
- Illinois Attorney General Raoul announced that Illinois joined a revised $82.5 million proposed antitrust settlement against cheerleading company Varsity Brands. The revised settlement allows Illinois residents to make claims related to a class action lawsuit that accused Varsity Brands of engaging in an exclusionary scheme to obtain and keep monopoly power in the cheer competition, cheer camp, and cheer apparel markets. A prior version of the settlement would not have provided any compensation for Illinois residents.
- Illinois Attorney General Raoul announced a settlement with drywall, taping, and painting company TBJ Drywall & Taping Inc., resolving allegations that the company misclassified its employees as independent contractors and failed to pay over $700,000 in overtime wages. This conduct violated the state Employee Classification Act and Minimum Wage Law. The settlement entitles employees to recover most of the wages they are owed, requires the company to change its practices, and subjects the company to four and a half years of monitoring to ensure compliance.
Massachusetts
- Massachusetts Attorney General Campbell announced settlements with temporary nurse staffing agencies Intelycare, Inc. and connectRN, resolving allegations that the companies failed to comply with Executive Office of Health and Human Services (“EOHHS”) regulations by charging long-term care facilities for services at rates that were above the maximum rates permitted by EOHHS. The settlements require Intelycare to pay over $500,000, including $236,000 in restitution to affected long-term care facilities and $270,000 in penalties; and connectRN to pay over $100,000, including $43,000 in restitution and $65,000 in penalties.
- Massachusetts Attorney General Campbell announced a settlement with Allied Recycling Center, Inc., resolving allegations that it violated the Federal Clean Water Act by unlawfully discharging industrial stormwater containing several types of pollutants without the requisite permit. The settlement requires Allied to install and maintain a new stormwater system, pay $87,500 to the Southwest Boston Community Development Corporation to fund water quality improvement projects, and pay $30,000 in attorney fees and costs.
New Hampshire
- New Hampshire Attorney General Formella announced that Hammond Grinding and Recycling, Inc. pled guilty to four felony charges for violating provisions of RSA 149-M, the New Hampshire Solid Waste Management Act and its accompanying administrative rules, and was sentenced for submitting false annual reports during 2021 and 2022 as well as failing to report violations of its solid waste facility permit. Specifically, the company exceeded its permitted storage limits of unprocessed waste and submitted false reports to cover it up. The company is subject to a $100,000 partially suspended fine.
- New Hampshire Attorney General Formella announced that his office accepted an Assurance of Discontinuance from Route 111 Auto Sales, Inc., resolving allegations that the company engaged in unfair and deceptive acts or practices. Specifically, the company allegedly violated RSA 358-F by selling unsafe vehicles without informing consumers of their right to request an inspection and be given a list of defects, as well as violated the FTC Used Vehicle Rule by not displaying the FTC Buyers Guide on vehicles for sale. The agreement requires the company to change its business practices, pay a $5,000 fine, pay over $38,000 in consumer restitution, and pay fees and costs.
New Jersey
- New Jersey Attorney General Platkin announced that 19 retailers in the state were issued Notices of Violation and assessed civil penalties of $4,500 each. The retailers allegedly violated the New Jersey Consumer Fraud Act by advertising and selling flavored vapor products that have been prohibited from being sold in the state since January 2020.
New York
- New York Attorney General James issued an alert warning companies against the price gouging of essential items in Suffolk County after severe weather led to a federal emergency declaration there. The alert states that New York’s price gouging law prevents businesses from selling essential services or goods at excessively increased prices during emergencies or other market disruptions.
Ohio
- Ohio Attorney General Yost announced a lawsuit against First Premier Home Warranty and its owner, alleging that the business has engaged in deceptive business practices in violation of Ohio consumer protection law. Specifically, the lawsuit accuses the business of misrepresenting its goods and services and providing a one-sided contract, violating the Consumer Sales Practices Act by misrepresenting online reviews, and violating the Telephone Solicitation Sales Act by failing to register with the state attorney general’s office. The lawsuit seeks changed business practices, consumer reimbursement, civil penalties, and costs.
Pennsylvania
- Pennsylvania Attorney General Henry announced a $50,000 settlement with landlord A.R. Building Company, Inc., resolving allegations that the company engaged in illegal billing, leasing, and debt collection practices. Specifically, the company allegedly arbitrarily inflated repair costs, asked consumers to sign leases that contained unfair and unenforceable terms, and used unfair debt collection tactics. The settlement includes $35,000 in consumer restitution, $10,000 in costs, and $5,000 in civil penalties, as well as requires the company to change its billing and leasing practices.
- Pennsylvania Attorney General Henry announced a settlement with Blue Moon 2020, LLC, which does business as Wertheimer Monuments, requiring it to fulfill orders placed for burial monuments and markers. The company previously failed to deliver these markers to consumers who had paid, provided them late, and/or failed to issue refunds. The settlement gives Wertheimer six months to fulfill its orders.