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
- A bipartisan coalition of state attorneys general announced two settlements with generic prescription drug manufacturers, Heritage Pharmaceuticals and Apotex. The combined settlement, which totals $49.1 million, follows the companies’ violation of numerous state consumer protection laws and resolves allegations that Heritage and Apotex partnered with a network of generic prescription drug companies to make medications more expensive and reduce options available by limiting competition.
- A bipartisan coalition of state attorneys general announced the completion of a $1.37 billion settlement agreement with Kroger that sought to address the grocery chain’s role in the opioid crisis. As a term of the settlement, the grocery chain will provide payments to each state and required its pharmacies to monitor, report, and share data regarding suspicious activity related to opioid prescriptions.
- A democratic coalition of state attorneys general sent a letter to Congressional leaders advocating for a national ban on price gouging to complement various existing state laws.
- A bipartisan coalition of state attorneys general sent a letter to the Federal Communications Commission (FCC) calling on the FCC to strengthen the Robocall Mitigation Database so providers understand what information they need to submit and have deadlines to submit this information, validate the data providers submit to flag inaccurate or misleading data, penalize providers for submitting false or inadequate information by preventing them from getting authorization to operate and blocking non-compliant providers.
- A democratic coalition of state attorneys general filed an amicus brief in the case of Properties of the Villages, Inc., v. the Federal Trade Commission, supporting the Federal Trade Commission’s (FTC) rule to eliminate noncompete clauses in employment contracts nationwide.
California
- California attorney general Rob Bonta issued a statement in response to a Court of Appeals decision affirming the lower court’s decision to end the allegedly anticompetitive Northeast Alliance. The Northeast Alliance was an anticompetitive joint venture that enabled American Airlines and JetBlue Airlines (two of the largest airlines in the United States) to function like a single carrier on certain routes, allegedly threatening competition in an industry experiencing the impacts of market consolidation. On September 21, 2021, Attorney General Bonta, along with the U.S. Department of Justice and a bipartisan coalition of states, sued the airlines over the Northeast Alliance. In July 2023, Attorney General Bonta secured a final permanent injunction by the U.S. District Court for the District of Massachusetts.
Colorado
- Colorado attorney general Phil Weiser announced a $225,000 settlement with the Bee’s Knees CBDs and its owner Joseph Leyba, resolving allegations that (1) the company made misrepresentations on its website regarding the source and organic nature of some of their products; (2) the website lacked a proper age verification system; and (3) the company did not support conservation groups that it claimed to support.
Pennsylvania
- Pennsylvania attorney general Michelle Henry announced a $50,000 settlement with A.R. Building Company, resolving allegations that the landlord engaged in unlawful billing, leasing, and debt collection practices. According to the complaint, A.R. Building inflated the repair costs the company billed to tenants for apartment damages, provided leases with unfair and unenforceable terms, and engaged in unfair debt collection practices. A.R. Building has agreed to change its prior practices and pay $35,000 in consumer restitution, $10,000 in costs, and $5,000 in civil penalties.
- Pennsylvania attorney general Michelle Henry announced a settlement with Inspire Clean Energy, a California-based energy provider, resolving allegations that the company’s representatives allegedly told consumers they were merely participating in a survey or signing up for a mailing list to receive information about clean energy, when in fact they were being enrolled in Inspire’s energy services. The settlement requires Inspire to pay $250,000, with $150,000 to go toward consumer restitution, and to make clear disclosures when contacting potential customers.
Rhode Island
- Rhode Island attorney general Peter Neronha announced the filing of a lawsuit against Kyle Seyboth, a local real estate broker, and associated defendants, alleging that they violated Rhode Island’s Unfair and Deceptive Trade Practices Act by deceiving homeowners with limited English proficiency by executing a “foreclosure rescue” scheme where the homeowners believed they were refinancing their mortgage when instead they were executing paperwork for the sale of their home for significantly less than market value. The Attorney General is seeking civil penalties and injunctive relief, including voiding the sale and returning the home to the original owners.