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. Below are the updates from January 1-7, 2026:
Multistate
A coalition of 21 state attorneys general announced that the First Circuit upheld a lower court ruling on a permanent injunction that stopped the administration from implementing a policy that would cut billions of dollars in medical and public health research funding for the Department of Health and Human Services and the National Institutes of Health. The ruling protects biomedical research and vital health advancements nationwide.
Arizona
Attorney General Mayes announced a settlement resolving a lawsuit against Pro Source Supply LLC, Pro Source Vapes LLC, Pro Source CBD LLC, and their owner, Timothy Kell, for illegally selling tobacco and nicotine products to underage consumers. The judgment requires Pro Source to pay $460,000 in restitution, penalties, and attorney’s fees, and to implement reforms preventing underage sales, including strict age-verification policies, electronic ID scanning, enhanced employee training, and regular independent compliance checks.
Colorado
Attorney General Weiser announced that MC Global Holdings, MC Nutraceuticals PLLC, MC Distribution LLC, MC Vivimus, LLC, Jeff Worley, and Bret Worley violated a previous settlement signed on May 14, 2025. The prior settlement had resolved allegations of deceptive consumer practices by misrepresenting the source, origin, quality, characteristics, ingredients, and health benefits of some cannabis products. MC/Vivimus allegedly violated the settlement by soliciting illicit cannabis products to consumers and making false representations to consumers regarding their products and business operations. Under the new settlement terms, MC/Vivimus will pay $75,000 in restitution.
Massachusetts
The Massachusetts Department of Public Utilities reached a settlement with Direct Energy Services, LLC, a subsidiary of NRG Energy, Inc., over noncompliant telemarketing practices. As part of the settlement, Direct Energy will donate $101,750 to Boston Medical Center’s Clean Power Prescription program and suspend all outbound telemarketing in Massachusetts for one year starting December 19, 2025.
Minnesota
Attorney General Ellison announced a lawsuit against the nonprofit Act for Cause (AFC) and its president, Rajesh Mehta, alleging self-dealing and misuse of nonprofit assets under Minnesota’s civil Nonprofit Corporation Act and the Supervision of Charitable Trusts and Trustees Act. The complaint includes allegations that Mr. Mehta used AFC’s assets for personal expenses, unlawfully transferred title of AFC’s $1 million commercial property to his for-profit business without compensating AFC, intermingled finances, withdrew large amounts of cash from AFC’s account, and failed to maintain proper board oversight or financial records.