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 July 16-August 12, 2026:

Multistate

  • A coalition of 19 attorneys general moved to intervene in a lawsuit against the U.S. Department of Defense (DoD) and Secretary Pete Hegseth, alleging that the DoD unlawfully froze routine national security reviews of land-based wind energy projects across the country, effectively blocking more than 100 wind projects. The coalition argues that the DoD’s “Wind Freeze” violates the Administrative Procedures Act and undermines state sovereign, economic, and policy interests.
  • A coalition of 20 attorneys general sent a letter to federal financial regulators to raise concerns about granting national banking charters to financial tech (“fintech”) companies without adequate safeguards to protect consumers and the financial system. The coalition warned that some fintech lenders use predatory tactics to target the financially vulnerable in violation of state laws and that extending banking privileges to cryptocurrency firms and emerging platforms could add risk to the financial system unless safeguards are implemented.
  • A 24-state coalition won a key court ruling declaring that an Office of Management and Budget regulation, the “Termination Clause” of 2 C.F.R. § 200.340, did not give federal agencies the authority to terminate billions of dollars in federal funding that Congress had appropriated for crucial state programs and services. The decision stated that the regulation does not independently authorize the agencies to terminate grants based on agency priorities identified after grants are awarded.
  • A coalition of 11 states, the District of Columbia, and two local governments, obtained a court order requiring the U.S. Environmental Protection Agency (EPA) to implement its 2024 rule tightening national ambient air quality standards for fine particulate matter (soot) under the Clean Air Act. The court granted summary judgment in the coalition’s favor after finding the EPA had failed to meet a statutory deadline for designating areas that do not meet the updated air quality standards and declined the agency’s request to stay the proceedings.
  • A coalition of 14 attorneys general submitted a comment letter to the Department of Health and Human Services and the Centers for Medicare & Medicaid Services opposing a new rule that would cut State-Directed Payments and supplemental Medicaid funding, which are used by states to maintain provider access and healthcare availability. The letter contends that the proposed rule exceeds the spending reductions Congress authorized in the One Big Beautiful Bill Act, conflicts with Medicaid expansion protections under the Affordable Care Act, and risks forcing hospitals to curtail services or shut down.
  • A coalition of 19 attorneys general and the City of New York filed an appellate petition for review, challenging the EPA’s decision to weaken regulations aimed at phasing out hydrofluorocarbons (HFCs) in commercial equipment. HFCs, which are used for refrigeration and cooling, are a growing source of greenhouse gas emissions. The coalition argues that the agency’s rollback of deadlines to phase out HFCs is arbitrary and capricious and violates the American Innovation and Manufacturing Act of 2020, which directs EPA to reduce HFC use by approximately 85% by 2036.
  • A coalition of 17 attorneys general submitted a comment letter urging the EPA to abandon its proposal to eliminate federal drinking water limits of certain per- and polyfluoroalkyl substances (PFAS, also commonly referred to as “forever chemicals”). The coalition maintains that the Safe Drinking Water Act’s anti-backsliding provision prohibits the EPA from revising its regulations except for “greater[] protection of the health of persons,” and that the EPA’s proposed rescission violates the Administrative Procedure Act.
  • A multistate coalition of attorneys general filed an amicus brief in the U.S. Court of Appeals for the First Circuit urging the court to uphold a lower court’s ruling blocking the Trump Administration’s freeze and termination of more than $2 billion in federal research grant funding to Harvard University. The coalition argued that the Administration’s funding freeze was retaliatory, taken in response to Harvard’s refusal to restructure its internal governance, alter its hiring and admissions practices, and change its curriculum to conform to the federal government’s preferences.
  • A coalition of 48 attorneys general announced a $29.6 million settlement with generic drug manufacturer Glenmark, resolving allegations that the company participated in a scheme to artificially inflate and manipulate prices, suppress competition, and unreasonably restrain trade in the market for numerous generic prescription drugs. Glenmark agreed, as part of the settlement, to cooperate with the ongoing multistate litigations and various internal reforms to ensure compliance with antitrust laws.
  • A coalition of 16 attorneys general announced their demand for transparency and accountability from OpenAI after its experimental artificial intelligence model allegedly gained unauthorized access to other computer networks and hacked another AI company, potentially in violation of consumer protection and data-privacy statutes. The coalition asked OpenAI to immediately cease and desist from all experiments that led to these actions until it could demonstrate that it can conduct such activities with control. The coalition also asked OpenAI to preserve all potentially relevant documents, data, and information.
  • A multistate coalition of 17 attorneys general announced a multistate settlement with Cal-Maine Foods, Inc., Centrum, and Hickman’s Egg Ranch, resolving allegations that the three major egg producers violated federal and state antitrust laws by illegally coordinating their bidding strategies to manipulate the Urner Barry benchmark pricing index—a daily price index widely used in egg supply contracts—artificially inflating the price of eggs paid by retailers and consumers nationwide beginning at least as early as 2022. The investigation found that the companies submitted sham bids at artificially inflated prices to distort the market and then withdrew those bids with the intentional aim of driving up Urner Barry price quotes. Under the settlement, the three producers will deliver a total of 53 million eggs to food banks and nonprofit organizations across the 17 participating states—including 4,968,000 eggs to New York—pay a combined $3.3 million to the states, and adopt compliance measures to prevent future illegal coordination.
  • A multistate coalition of 10 attorneys general filed a lawsuit in the U.S. District Court for the District of Oregon challenging two rules issued by the Office of the Comptroller of the Currency that purport to invalidate state laws requiring mortgage lenders to pay interest on funds borrowers are required to deposit into escrow accounts to cover property taxes and insurance. The coalition alleges that the OCC rules—issued in May 2026 in response to requests from banking lobbyists—exceed the agency’s rulemaking authority under the Administrative Procedure Act and improperly override states’ sovereign authority to enforce their own consumer protection statutes. The coalition further argues that by exempting only nationally chartered banks from state interest-on-escrow requirements, the rules place smaller, state-chartered banks at a competitive disadvantage and could cost borrowers thousands of dollars in interest payments each year.
  • A multistate coalition of 13 attorneys general secured a ruling from the U.S. District Court for the Eastern District of California finding that Nexstar Media Group violated a preliminary injunction in the states’ antitrust lawsuit challenging Nexstar’s approximately $6.2 billion acquisition of Tegna, Inc. The court found that Nexstar violated the injunction by placing current or former Nexstar executives on Tegna’s Board of Directors and ordered their removal. The court also directed both companies to provide regular reporting to the states and ordered the appointment of a special master to oversee compliance. The underlying lawsuit, with trial scheduled for July 6, 2027, alleges that the merger—which combined the nation’s largest and third-largest local television station owners, creating an entity controlling roughly 265 stations across 44 states—lessens competition in local TV markets, reduces diversity of viewpoints in local news, and raises costs for cable and television subscribers.

Arkansas

  • Attorney General Griffin filed a lawsuit in the Circuit Court of Polk County, Arkansas against 22 defendants, including drug manufacturers, related entities, and a data management firm. The lawsuit alleges violations of the Arkansas Deceptive Trade Practices Act: that the manufacturers imposed unlawful conditions on Arkansas covered entities to receive 340B discounted drugs, and that all defendants knowingly facilitated these restrictions through a shared web platform. The lawsuit seeks civil penalties, injunctive relief, and costs.

California

  • Attorney General Bonta filed a second petition challenging the Pipeline and Hazardous Materials Safety Administration’s (PHMSA) issuance of a new “non-emergency special permit” that would authorize Sable Offshore Corp. (Sable) to transport oil through two California onshore pipelines. The petition alleges that this act illegally asserts federal jurisdiction over the pipelines in violation of state and federal pipeline safety law. After a 2015 oil spill, a consent decree was entered requiring the State Fire Marshal to participate in the review and approval of restarted onshore pipelines.

Colorado

  • Attorney General Weiser secured a $100,000 settlement with Domuso, a rent-payment processing company. The agreement resolves claims that Domuso imposed illegal surcharges on tenants when they used credit or debit cards to pay rent, in violation of the Uniform Consumer Credit Code and the Colorado Consumer Protection Act. The judgment requires Domuso to cap fees related to rent payments, end fee-sharing arrangements with Colorado properties, and provide cost-free payment alternatives to all Colorado renters.

Delaware

  • The Delaware Supreme Court affirmed the dismissal of a case brought by Swan Energy, Inc. and several individuals against the Investor Protection Unit of the Delaware Department of Justice, thereby upholding the constitutionality of the Delaware Securities Act’s administrative enforcement framework. The Court held that enforcement actions initiated by the Investor Protection Unit of the Delaware Department of Justice can proceed administratively without a jury trial.

Florida

  • Attorney General Uthmeier announced the return of $710,000 to a victim who was defrauded through a work-from-home online product review scam, involving depositing cryptocurrency into an account under false promises of commissions. This is the largest yet single reimbursement obtained by the Florida Cyber Fraud Enforcement Unit.

Illinois

  • Attorney General Raoul secured a $20 million settlement with Chicago Merchandize Company, Fuma Vapor Inc., and Ione Wireless, Inc. (collectively, “the distributors”), distributors of e-cigarettes and disposable vapes. The agreement resolves claims that the distributors were selling unauthorized e-cigarettes with flavors that appealed to the youth, in violation of the Illinois Youth Prevention Vaping Act. The distributors allegedly promoted fruit- and candy-flavored products through social media channels frequented by minors, employing visuals and messaging designed to appeal to younger audiences. The judgment requires that the distributors be barred from marketing or advertising any e-cigarette in a manner that appeals to youth, and be required to implement all age-verification tools available on any social media platform on which they advertise.

Michigan

  • Attorney General Nessel secured a preliminary injunction halting the operations of Boss’s Pump & Well Service, LLC (“Boss’s Pump”), a well pump installation company, and its owner, Chadwick Boss, for alleged violations of the Michigan Consumer Protection Act and Part 127 of the Public Health Code. The complaint alleged that Boss’s Pump conducted business across Michigan without the required licensure, regularly causing property damage, failing to complete contracted work, and compromising the sanitary condition of consumers’ water wells. According to the complaint, Boss’s Pump additionally failed to issue refunds for unperformed services and misrepresented to consumers that certain repairs were necessary when they were not.

New Mexico

  • Attorney General Torrez and the U.S. Department of Justice’s Health Care Fraud Strike Force Program secured a nearly $4 million settlement against an individual for conspiracy to commit health care fraud. The multi-year scheme resulted in nearly $4 million in false Medicaid claims for transportation expenses. Attorney General Torrez noted healthcare fraud in New Mexico “will be investigated and prosecuted.”
  • New Mexico Attorney General Torrez secured a final judgment against Meta Platforms, Inc. in the First Judicial District Court, ordering the company to pay a total of $942 million and imposing sweeping, court-supervised structural reforms to Facebook and Instagram that will remain in effect for five years. The judgment follows a two-phase trial in which a jury found that Meta committed 75,000 violations of New Mexico’s Unfair Practices Act—resulting in a $375 million civil penalty—and the court subsequently ruled that Meta’s platforms constitute a public nuisance in New Mexico, rejecting Meta’s claim that Section 230 shielded it from liability for products it knowingly designed to harm minors. The Phase 2 judgment adds $567 million and orders Meta to implement more rigorous age verification, strengthen protections against sextortion and child sexual exploitation, eliminate overnight push notifications for users under 18, impose mandatory time-use limits for minors, require default privacy protections, fund a statewide education and awareness campaign, and file semiannual public compliance reports with the court—marking the first time a court has held a social media company financially and structurally accountable for building products that endanger children.

New York

  • Attorney General James sued KalshiEx LLC (“Kalshi”), a prediction-market platform, for alleged violations of several New York Executive Laws and the Federal Interstate Wire Act. The complaint alleges that Kalshi’s prediction market functions as an unlawful and unlicensed gambling enterprise, subjecting consumers to significant personal and financial harm. The complaint seeks damages in the form of consumer restitution and monetary penalties, and injunctive relief prohibiting Kalshi’s principals, agents, and employees from conducting an illegal gambling business or otherwise advancing or profiting from gambling activity within the state.

Rhode Island

  • Attorney General Neronha announced that Dr. Mark Breiding, a chiropractor, was sentenced in Kent County Superior Court on Medicaid fraud charges for submitting hundreds of fraudulent claims to Neighborhood Health Plan of Rhode Island. The court ordered Dr. Breiding to pay more than $74,000 in restitution to the Rhode Island Executive Office of Health and Human Services, surrender his medical license, and be permanently barred from receiving payments from Medicaid and Medicare.

Texas

  • Attorney General Paxton announced the launch of industry-wide investigations into manufacturers and sellers of feminine care and cosmetic products— including lip balm, lipstick, and other lip product brands—to determine whether companies have deceived consumers about the presence of toxic chemicals in their products. Separately, Attorney General Paxton launched an investigation into the feminine care products industry following reports of dangerous heavy metal contamination. As part of this investigation, the Attorney General issued Civil Investigative Demands to Tampax, Kotex, L., and LOLA. Both investigations focus on potential violations of the Texas Deceptive Trade Practices Act, including whether consumers were misled about the quality and safety of the products.

Washington

  • Attorney General Brown won a preliminary injunction against Kalshi, with the court finding that the online platform’s “prediction market” likely constituted gambling in violation of the Washington Gambling Act and amounts to unfair and deceptive conduct prohibited by the Washington Consumer Protection Act.
  • Attorney General Brown announced a $750,000 settlement with Lexyl Technologies, a travel technology company, and Bookonline.com, a third-party hotel-booking website, for alleged violations of the Washington Consumer Protection Act and the Restore Online Shopper’s Confidence Act. The settlement resolves claims that the companies engaged in deceptive practices by imposing undisclosed booking fees and mischaracterizing optional charges as mandatory, a practice referred to as a “negative option feature.” The judgment provides $754,299 in restitution to Washington consumers, $300,000 to the State of Washington Attorney General’s Office, and prohibits the defendants from enrolling, charging, or attempting to charge any consumer through a negative option feature unless its terms are disclosed conspicuously and clearly.