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 coalition of 21 state attorneys general filed an amicus brief in support of a motion for a temporary restraining order against the Trump administration’s federal “buyout” plan, under which federal employees were offered “deferred resignation.” The lawsuit was filed by unions in the United States District Court for the District of Massachusetts, who allege that the buyout is illegal and against federal ethics regulations. The amicus brief emphasizes that the directive harms the federal workforce and the public interest.

Arizona

  • Arizona Attorney General Mayes sued pharma company GlaxoSmithKline under the Arizona Consumer Fraud Act for allegedly employing deceptive and unfair practices that endangered asthma patients. The lawsuit alleges that the company deliberately stopped making asthma medication Flovent and replaced it with an identical generic to avoid Medicaid rebates. The lawsuit seeks injunctive relief, civil penalties, and restitution.

Florida

  • The Florida Attorney General’s office announced the shuttering of hundreds of fake SunPass websites, which used fraudulent toll notices in phishing schemes to steal individuals’ financial and personal information. The office also released a consumer protection guide on how to avoid toll scams, including fraudulent E-ZPass and SunPass websites.

Indiana

  • Indiana Attorney General Rokita announced a settlement with home building company Davis Homes, resolving allegations that the company unlawfully included a clause in its contracts fining buyers $2,000 for bad reviews. The settlement includes the company’s agreement not to further interfere with consumer reviews, including notifying previous buyers that the clause is null and void. While the settlement does not include monetary terms, violation of the settlement is prima facie evidence of deceptive conduct, which could result in financial penalties.

Iowa

  • Iowa Attorney General Bird announced a settlement with the executive of a stem cell company, resolving allegations that the company falsely advertised and sold unproven and dangerous treatments as “regenerative medicine” for various health issues. The settlement permanently bars the defendant from advertising or selling stem cell treatments in Iowa, and includes payments of $240,000 in restitution and $6,000 to Iowa’s fund for consumer education and litigation.

Michigan

  • Michigan Attorney General Nessel issued a consumer alert on illegal gaming machines, which are casino-style machines that are illegal in the state. The alert warns consumers of the dangers and legal repercussions associated with these machines, and states that businesses could be in violation of the Michigan Consumer Protection Act, which allows for fines for repeat offenses of up to $25,000.

Minnesota

  • Minnesota Attorney General Ellison announced a settlement with asphalt company Community Blacktop, LLC and its owner, resolving allegations that the company falsely promised quality asphalt work and delivered inadequate results at inflated prices. The settlement requires the company to dissolve and pay $100,000 in restitution.

New York

  • New York Attorney General James announced that her office secured more than $6.9 million in refunds and $7 million in canceled debt from urgent care provider CityMD, resolving allegations that the company wrongfully billed for COVID-19 testing during the pandemic, which was prohibited under state and federal laws.

North Carolina

  • North Carolina Attorney General Jackson announced an investigation into educational software company PowerSchool and its recent data breach that affected about 4 million people in North Carolina and 62.4 million in the United States. The investigation will determine if PowerSchool violated any state or federal data privacy laws.

Tennessee

  • Tennessee Attorney General Skrmetti announced that the Tennessee Public Utility Commission denied almost the entirety of Tennessee-American Water Company’s requested $13.9 million annual rate increase. The Commission granted $1 million of the requested increase, which will result in lower increased payments for consumers.

Vermont

  • Vermont Attorney General Clark announced a settlement with online hearing aid seller Hearing At Home, LLC, resolving some of the allegations that the company violated Vermont’s Consumer Protection Act, which makes it illegal to deceptively advertise and sell over-the-counter hearing aids. The settlement agreement includes suspended payments of $100,000 in civil penalties and $41,500 in restitution.