Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 41 attorneys general are fighting to ensure that state, local and tribal entities have appropriate and timely access to corporate ownership information that is crucial to fighting corruption, organized crime, white-collar crime and terrorism. Accordingly, the coalition sent a letter to the Financial Crimes Enforcement Network, a bureau of the U.S. Department of Treasury. Ohio Attorney General Dave Yost and 41 other attorneys general outlined the need for nonfederal agencies to be able to access information without unnecessary and burdensome requirements.
  • A coalition of 23 state attorneys general supported a decision by CVS and Walgreens pharmacies to begin offering mifepristone and misoprostol, or “medication abortion,” in their stores. The decision, announced by the two companies last month, followed a recent rule change by the Food and Drug Administration that will allow retail pharmacies to dispense mifepristone to patients with a prescription for the drug.
  • Ohio and Pennsylvania negotiated agreements with DNA Diagnostics Center after a data breach exposed the social security numbers of more than 45,000 consumers who underwent genetic testing between 2004 and 2012. The investigation, conducted by the Pennsylvania and Ohio Offices of Attorney General, revealed that DNA Diagnostics Center failed to properly employ reasonable data security measures in protecting consumers’ sensitive personal information. The DNA-testing company will pay $200,000 each to both the Pennsylvania and Ohio Attorneys General Offices.

Arizona

  • Arizona Attorney General Kris Mayes publicized that the Arizona Attorney General’s Office is launching an antitrust investigation of the proposed merger between The Kroger Co. and Albertsons Companies, which operates supermarkets under the Albertsons and Safeway brands in Arizona.

Connecticut

  • Connecticut Attorney General William Tong responded to a draft decision by the Public Utilities Regulatory Authority, rejecting Eversource-owned Aquarion’s $36 million rate hike. The requested rate hike would have increased water rates by more than 30 percent over three years for 236,000 Aquarion customers across 72 cities and towns in Connecticut.
  • Attorney General Tong sought new investigative authority over bank consumer financial protection failures following the fraught merger between People’s United and M&T banks. To date, the Office of the Attorney General has received over 400 complaints regarding the merger, including alarming reports of money disappearing from accounts, loss of access to online banking, and refusal to accommodate those with pre-existing powers of attorney.

District of Columbia

  • The Office of the Attorney General for the District of Columbia released a consumer alert warning about tax season scams.

Florida

  • Florida Attorney General Ashley Moody, McGruff the Crime Dog®, the National Crime Prevention Council and NASCAR driver Joey Gase launched a new crime-prevention campaign. Attorney General Moody is warning about the proliferation of counterfeit pills containing deadly amounts of illicit fentanyl.
  • Attorney General Moody issued a consumer alert notifying eligible families, military members and veterans about potential available relief. Last year, through a multistate action, Attorney General Moody secured $34 million in total relief from Harris Jewelry over allegations that the company deployed deceptive business practices.

Georgia

  • Georgia Attorney General Chris Carr shared tips to help Georgians avoid romance scams this Valentine’s Day.

Massachusetts

  • Massachusetts Attorney General Andrea Joy Campbell reported that her office reached a $2.5 million settlement with Leominster-based Regional Home Care, Inc., resolving allegations that the company engaged in unfair, deceptive and abusive debt collection practices in violation of state consumer law and debt collection regulations and improperly collected money from members of MassHealth, the state’s Medicaid program, for balances not owed or that were already paid for by MassHealth.

Michigan

  • Michigan Attorney General Dana Nessel filed comments before the Michigan Public Service Commission in Docket No. U-18238 asking for greater transparency regarding money spent by utilities to influence public policy. In this docket, the Commission requested comments from interested parties to address potential modifications to the Rate Case Standard Filing Requirements.
  • Michigan Attorney General Nessel reported that a Wayne County man who previously pled guilty to Conducting a Criminal Enterprise and Identity Theft charges has been sentenced.

Montana

  • Montana Attorney General Austin Knudsen warned Montanans about scammers attempting to obtain personal information from unsuspecting Montanans over the phone claiming to be law enforcement officials.

New Jersey

  • New Jersey Attorney General Matthew J. Platkin announced that the Legalized Games of Chance Control Commission has fined Christine Strothers and banned her from holding Amusement Games Licenses for ten years. Strothers operated amusement games at numerous locations along the boardwalk in Wildwood and North Wildwood, NJ. Investigators found several basketballs inflated beyond the manufacturer’s specifications and other regulation violations related to the display of prizes.
  • Attorney General Platkin, with the Bureau of Securities, also announced that Nexo Capital Inc. reached a $45 million settlement agreement with state and federal securities regulators over Nexo’s illegal offer and sale of unregistered securities in the form of interest-bearing digital asset deposit accounts.

Ohio

  • The Office of Ohio Attorney General Dave Yost sued two Columbus contractors who renamed their business multiple times for performing shoddy driveaway resurfacing work, leaving their consumers dissatisfied and cheated.
  • Attorney General Yost also filed lawsuits seeking to dial back odometer-tampering schemes at two Columbus-area used-car dealerships. The lawsuits against S Automotive and its owner, Simon Nwaru Jr., and Kalango Links and its owner, Korite Michael Kalango, also accuse both dealerships of failing to inform consumers when they were buying rebuilt salvaged vehicles.

Pennsylvania

  • Acting Attorney General Henry also announced that the Pennsylvania Office of Attorney General has entered into a settlement agreement with Eagle Disposal of PA, Inc., for alleged violations of Pennsylvania’s Unfair Trade Practice and Consumer Protection Law. In 2021, Eagle failed to collect trash and/or recycling from over 1,800 residential subscription customers for multiple weeks at a time.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 23 state attorneys general filed a lawsuit against the Biden administration’s “Waters of the United States” rule, which would expand federal authority over bodies of water across the United States. The lawsuit, which seeks a preliminary injunction against the rule’s enforcement, alleges that the President’s interpretation of the rule goes beyond the power Congress gave to the federal government in the Clean Water Act and violates the Administrative Procedure Act.
  • A coalition of 14 state attorneys general submitted comments against Gas Innovations LNG Refrigerants Inc.’s request for a special permit to ship cryogenic liquefied ethane in rail tank cars from its Pennsylvania facility across the United States. The coalition is urging the Pipeline and Hazardous Materials Safety Administration to deny the application because it does not provide certain information, such as destinations for the cargo and safety measures that would be put in place to ensure protection of affected communities.
  • A bipartisan coalition of state attorneys general filed an amicus brief in U.S. Supreme Court cases United States ex rel. Tracy Schutte, et al v. SuperValu, Inc. and United States ex rel. Thomas Proctor v. Safeway, Inc., asking the Court to adopt a robust reading of the False Claims Act to protect publicly funded programs from fraud. Specifically, the coalition is arguing that the Court should interpret “knowingly” under the Act to allow evidence of what a provider knew or should have known based on relevant Medicaid guidance.
  • Several state attorneys general are asking the United States Court of Appeals for the Fifth Circuit to review a Securities and Exchange Commission rule that mandates that investment managers make additional disclosures about their proxy votes. Under the rule, investment managers are required to sort their proxy votes into categories of information including climate, human rights and diversity, inclusion, and equity. The attorneys general believe the rule is irrelevant to the economic value of investments and would increase costs.

Colorado

  • Colorado Attorney General Weiser sent a letter to AmeriGas following consumer complaints stating that the company was unwilling or unable to service propane tanks. The letter, which gave the company until March 1 to reply, warned AmeriGas that its failure to fill propane tanks could be endangering the health and safety of children and elderly consumers and could be a violation of state consumer protection law.

Connecticut

  • Connecticut Attorney General Tong announced an investigation into for-profit nursing school Stone Academy over potential violations of the Connecticut Unfair Trade Practices Act after the school quickly shut down, disrupting students’ plans for education. Attorney General Tong’s civil investigative demand seeks detailed information on issues such as the school’s education, tuition, marketing, accreditation, revenues, decision to close, and plans to address the closure.

Michigan

  • Michigan Attorney General Nessel is asking DTE Energy and Consumers Energy to automatically credit customers who were affected by recent weather events and resulting power outages.

New York

  • New York Attorney General James filed a lawsuit against cryptocurrency platform COINEX for failing to register as a securities and commodities broker-dealer and falsely indicating that it was a crypto exchange. The lawsuit seeks a court order requiring the company to stop representing that it is an exchange, preventing the company from operating in New York, and requiring the company to use geo-blocking based on GPS locations and IP addresses that would prevent access to its website and mobile app from New York locations.
  • New York Attorney General James and United States Attorney for the Northern District of New York Freedman announced $7.1 million settlements with the Saratoga Center for Rehabilitation and Skilled Nursing Care and its owners, operator, and landlord. The settlement resolves allegations of fraud and the neglect of residents.
  • New York Attorney General James announced an agreement with home care company Affordable Senior Care of New York LLC and its agent, preventing them from entering into anti-competitive agreements in the future. The agreement follows an investigation finding that Affordable’s agent entered into an illegal no-poach agreement with competitor Marks Homecare Agency to not take each other’s current patients. The agreement also includes a $400,000 payment.

Washington

  • Washington Attorney General Ferguson announced that the state House has passed a bill ensuring that utility operators may not shut off consumers’ power or water when the National Weather Service issues a heat-related alert or warning. The state Senate will now consider the bill.
  • Washington Attorney General Ferguson announced that Electron Hydro, LLC and its Chief Operating Officer pleaded guilty to a gross misdemeanor violation of operating an illegal hydraulic project. The criminal charges follow a construction project updating the Electron Dam in the summer of 2020. The Attorney General’s Office has recommended a $1 million sentence.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 19 state attorneys general, led by California Attorney General Rob Bonta and New York Attorney General Letitia James submitted a letter in support of the Environmental Protection Agency’s supplemental proposal to strengthen regulation of emissions from new, modified, and reconstructed facilities in the oil and natural gas sector, and to, for the first time, regulate methane emissions from existing facilities, which comprise the majority of the emissions in this sector.
  • A coalition of 7 state attorneys general filed a petition to the Occupational Safety and Health Administration (OSHA) requesting that it issue an emergency standard for occupational heat exposure to protect workers in the coming summer months. The petitions calls on OSHA to put temporary, emergency standards in place to protect workers from exposure to extreme heat this summer while its work on a permanent national heat standard is still underway. The petition argues that extreme heat poses a grave danger to indoor and outdoor workers in a wide range of industries.
  • A coalition of 22 state attorneys general, led by Massachusetts Attorney General Andrea Joy Campbell and California Attorney General Rob Bonta, submitted a letter to the U.S. Department of Education in response to proposed changes to the Income-Driven Repayment (IDR) program. The coalition commends the Department’s proposal to create what it considers the most affordable income-driven repayment plan ever made available to federal student loan borrowers and called on the Department to make additional changes that would provide critical assistance to struggling borrowers. In their letter, the coalition also calls upon the Department to adopt additional measures to ensure that IDR will benefit more borrowers, including: (1) making consolidated Parent PLUS loans eligible for the most affordable repayment plan—Revised Pay As You Earn (REPAYE); (2) creating a simpler path for borrowers in default to enroll in IDR; (3) counting all past forbearance and repayment periods and certain deferment periods toward IDR loan forgiveness; and (4) expanding the reach of the Department’s proposals to provide retroactive relief to borrowers who have suffered from the historic mismanagement of the federal loan repayment system.
  • A coalition of 22 state attorneys general have signed onto an amicus brief filed in Alliance of Hippocratic Medicine v. U.S. Food and Drug Administration (FDA), a case pending in the U.S. District Court for the Northern District of Texas, asking the court to reject a challenge brought by anti-abortion groups seeking to revoke the FDA’s approval of the medication abortion drug, mifepristone. The brief warns that withdrawing federal approval for mifepristone would drastically reduce access to safe abortion care and miscarriage management for millions of people across the country. A ban on mifepristone would affect all states, including those where abortion is legal. The coalition urges the court to reject this baseless attempt to undermine the FDA’s authority, which would upend decades of medical practice and trample the rule of law.

Arkansas

  • Arkansas Attorney General Tim Griffin announced the addition of three new members to the Office of the Attorney General: Robbi Riggs Rosenbaum, Deputy General Counsel; Doralee Chandler, Deputy Attorney General for State Agencies; and Barrett Dudley, Deputy Director of Intergovernmental Affairs.

California

  • California Attorney General Rob Bonta with Senator Bill Dodd and Senator Nancy Skinner, announced the introduction of Senate Bill 478 (SB 478), legislation seeking to prohibit in California the practice of hiding mandatory fees. The bill would require that the advertised price of a product or service include all required charges besides government taxes or fees.

Colorado

  • Colorado Attorney General Phil Weiser announced that the Office would join state legislators and consumer health advocates at the State Capitol in support of Senate Bill 23-093, legislation that would provide Coloradans with additional consumer protections from high interest rates for medical debt and confusing debt collection practices that lead to long-lasting debt and financial instability. Some of the new protections that the legislation seeks to codify include the following: (1) capping the medical debt interest rate at 3%; (2) pausing collections on medical debt as patients appeal their coverage; (3) requiring medical debt creditors or debt collectors to verify total debt owed upon request by a patient and to provide a copy of a payment plan; (4) requiring a health-care provider to provide, upon request, an estimate of the total cost of medical services to a person who intends to self-pay for the service; and (5) reinstating the attorney general’s authority to protect consumers from deceptive trade practices related to billing practices, surprise billing, and balance billing whether they seek in or out-of-network care.

Kentucky

  • Kentucky Attorney General Daniel Cameron announced a nearly $10 million settlement with Ethicon, a subsidiary of Johnson and Johnson that manufactures pelvic mesh surgical devices, for allegedly engaging in deceptive marketing practices. More specifically, the Attorney General alleged that Ethicon violated the Kentucky Consumer Protection Act by misrepresenting or failing to adequately disclose serious and life-altering risks of surgical mesh devices, such as chronic pain, scarring, painful sexual intercourse, and other complications. Under the terms of the agreement, Ethicon, has agreed to pay the state $9.9 million within thirty days of settlement.

Massachusetts

  • Massachusetts Attorney General Andrea Joy Campbell announced a settlement with Northeast Health Services, LLC and its former owners, Robert A. Conway and Wallace W. Varonko resolving allegations that Northeast caused fraudulent claims to be submitted to MassHealth by failing to ensure that certain clinicians received appropriate supervision from a licensed clinician. The parties have agreed to pay $940,000 to MassHealth.
  • Massachusetts Attorney General Andrea Joy Campbell announced a settlement with Safe Home Security, its sister companies, and CEO David G. Roman, resolving allegations that they violated state consumer protection laws by deceptively trapping Massachusetts consumers in long-term auto renewal contracts and engaging in illegal debt collection practices. More specifically, the complaint alleged that the defendants employed alleged deceptive tactics to prevent consumers from canceling their contracts, charged consumers for services when their systems were not working, and engaged in aggressive and illegal debt collection practices. According to the settlement, Safe Home Security will be required to pay $1.8 million, to waive and forgive $4.7 million of outstanding debt, and to make significant changes to its business practices, including actions to bring it into compliance with debt and crediting laws.

Minnesota

  • Minnesota Attorney General Keith Ellison announced a settlement with Direct Account Management, (DAM) a student-loan debt-relief company, for allegedly illegally collecting fees and misrepresenting its services to consumers. More specifically, DAM allegedly promised consumers student-loan forgiveness and pocketed exorbitant fees to enroll consumers in federal repayment programs that consumers can enroll themselves in for free. The Attorney General also alleged that DAM charged up-front fees before performing the promised services in violation of Minnesota law regulating debt-settlement services. The settlement requires DAM to immediately pay consumer restitution in the amount of $20,063.12 and to cease operating in Minnesota unless and until it registers as a debt-settlement service provider. 
  • Minnesota Attorney General Keith Ellison announced the that addition of Jessica Whitney as Deputy Attorney General in the Office of the Minnesota Attorney General. She will serve as one of four deputy attorneys general in the Minnesota Attorney General’s Office and will co-lead the Office’s consumer protection work with current Deputy Attorney General James Canaday starting on March 1.  

Ohio

  • Ohio Attorney General Dave Yost announced the filing of a lawsuit against Rite on Roofing and Siding, LLC, a home-improvement contractor, for allegedly stealing approximately $54,000 by accepting deposits from homeowners and failing to deliver goods or services.

Rhode Island

  • Rhode Island Attorney General Peter Neronha announced a settlement with Centurion Filing Services, resolving allegations that it illegally induced businesses and non-profits to pay unnecessary fees for a Certificate of Good Standing that they did not need. According to the settlement, Centurion is required to pay up to $104,000 in restitution and a $25,000 civil penalty.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • Several state attorneys general announced an over $45 million settlement with digital-asset financial services companies Nexo Inc. and Nexo Capital Inc., resolving allegations that they offered and sold unregistered securities.
  • A multistate coalition of 25 state attorneys general filed a lawsuit over a U.S. Department of Labor rule that would permit 401(k) managers to direct client money to Environmental Social Governance investments. The coalition is arguing that the rule goes against the laws in the Employee Retirement Income Security Act of 1974 and would harm many individuals’ retirement accounts.
  • A bipartisan coalition of state attorneys general sent a letter to the Biden Administration asking it to respond to several Governors’ requests that the U.S. Environmental Protection Agency issue regulations allowing the sale of E15 ethanol gasoline year-round under the Clean Air Act. The coalition maintains that E15 is cleaner and more cost-effective than E10, which has fewer restrictions.

California

  • In light of Data Privacy Day, California Attorney General Bonta announced an investigative sweep involving sending letters to companies using mobile apps that do not comply with the California Consumer Privacy Act. The sweep focuses on apps in the retail, food, and travel industries that do not comply with opt-out requests or don’t offer mechanisms for those who want the sale of their data to stop. It also focuses on businesses that do not process consumer requests from an authorized agent such as through the app Permission Slip.
  • Following winter storms, California Attorney General Bonta warned consumers to be wary of unlicensed contractors selling their services. The press release reminds consumers that price gouging during a state of emergency is illegal.

Idaho

  • Idaho Attorney General Labrador announced changes to the Idaho Consumer Protection Act related to the automatic renewal of subscriptions that became effective on January 1. The new law, known as “Click to Cancel,” requires businesses selling subscription products and services to provide a way for subscribers to cancel for free online or by the same method they used to subscribe. For subscriptions that have an original term of a year or longer, the business must send reminders 30-60 days before the renewal deadline, and include information about how to cancel.

Kansas

  • Kansas Attorney General Kobach announced that he plans to sue the Biden Administration unless the U.S. Fish and Wildlife Service withdraws its rule listing the lesser prairie chicken as a threatened species. The press release notes concern about the effect of the rule on Kansas ranchers, oil producers, and wind farms, and the belief that the rule is illegal.

Massachusetts

  • Massachusetts Attorney General Campbell announced her support for several pieces of legislation in the 2023-2024 session. Among other things, these bills provide for additional tools for the Attorney General to protect nursing home residents from abuse and neglect, enhance consumer protection laws related to the purchase of used or leased automobiles, and electric rate-payer protections.
  • Massachusetts Attorney General Campbell announced that baked goods wholesale company Dutch Maid Bakery, Inc. and Dutch Maid Bakery Massachusetts Business Trust, two executives, and associated staffing agency Hub Personnel Services, Inc. and its executives were issued a series of citations for wage and hour violations. The citations total over $440,000 in restitution and penalties for conduct such as failing to pay minimum wage and overtime wages, failing to keep and produce accurate payroll records, and failing to provide written notice of earned sick leave time.
  • Massachusetts Attorney General Campbell announced that her office reached a $350,000 settlement with Hometown Auto Framingham, Inc., resolving allegations that the company used unfair, deceptive, and discriminatory pricing of “add-on” products that it sold to Black and Hispanic consumers. In addition to the monetary provision, the settlement requires the company to provide staff training on implicit bias, requires disclosure of and improved oversight of “add-on” product pricing, and additional compliance monitoring requirements.

New York

  • New York Attorney General James sent a letter to Madison Square Garden Entertainment Corporation seeking information about its use of facial recognition technology to prohibit some ticketholders from entering related venues. This reportedly included denying entry to lawyers affiliated with adverse litigation against the company. The letter notes a concern that denying entry to these individuals could violate human rights laws; and it questions whether the facial recognition software is reliable and includes safeguards to avoid bias and discrimination.

North Dakota

  • North Dakota Attorney General Wrigley announced that he filed a proposed Consent Judgment seeking approval of a settlement with photography business Glasser Images, its owner, and a former employee. The settlement, which centers around the business’s failure to provide services after receiving advance payments, includes Glasser’s admission that it engaged in consumer fraud, restitution over $800,000, and a $30,000 civil penalty. It also bans the defendants from owning or operating a photography business in the state for at least 15 years.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

California

  • California Attorney General Rob Bonta conditionally approved the sale of four continuing care retirement communities (CCRCs) located in Northern and Southern California. Attorney General Bonta also conditionally approved the sale of the residential care facility for the elderly known as “Windsor” to Ararat Home of Los Angeles, Inc.
  • Attorney General Bonta submitted a comment letter to the Consumer Financial Protection Bureau regarding the agency’s preliminary determination that the California Commercial Financing Disclosures Law is not preempted by the Federal Truth in Lending Act.

Florida

  • Florida Attorney General Ashley Moody issued a consumer alert with tips for Floridians to secure personal information during National Data Privacy Week. According to reports, data breaches exposed approximately 22 billion records worldwide in 2022.
  • Attorney General Moody’s Office of Statewide Prosecution secured 30-year prison sentences for members of a massive identity theft scheme. Carnessa Rouse, Gregory Engram and Samishia Askew stole the identities of more than 120 individuals, most of whom were above the age of 65. Using the victims’ identities, the defendants opened fraudulent credit card accounts to fund luxurious lifestyles.

Georgia

  • Alongside Insurance Commissioner John King, Attorney General Chris Carr urged Georgians to be on the lookout for potential home repair fraud, insurance scams, price gouging, and other schemes following the recent tornadoes and severe storms that moved throughout the state.

Maryland

  • Maryland Attorney General Anthony G. Brown publicized that his Consumer Protection Division reached a settlement with Charm City Puppies, Inc. and its owner, Wayne Cossentino. The Division had alleged that Charm City Puppies violated the Consumer Protection Act when it sold puppies to consumers in violation of the “No More Puppy Mills Act.”

North Dakota

  • North Dakota Attorney General Drew Wigley announced that his office has issued a Cease and Desist Order against Nu Life Institute, LLC and Edward Baca III of Las Vegas, Nevada—banning the business from engaging in any sales in the State of North Dakota. The Attorney General’s Consumer Protection Division began investigating the business when it received a complaint involving an elderly consumer who paid $844 believing she was receiving a product that would treat macular degeneration. 

Pennsylvania

  • Acting Pennsylvania Attorney General Michelle Henry announced a settlement with the gravestone and engraving company “1843 LLC,” and its owners Gregory J. Stefan Sr., Gregory J. Stefan Jr., and Gerard Stefan. According to court documents, the company often failed to deliver gravestones and gravestone engravings in a timely manner, or not at all.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A coalition of 21 state attorneys general submitted a letter challenging the ESG practices of two proxy advisory companies, International Shareholder Services, Inc. (ISS) and Glass, Lewis & Co.  The attorneys general are challenging how ESG considerations affect ISS and Glass Lewis’s proxy voting recommendations that conflict with the financial interests of their clients.
  • A coalition of 18 state attorneys general filed an amicus brief in support of New York’s defense against a legal challenge to its firearm-related public nuisance statute in the U.S. Court of Appeals for the Second Circuit. The New York statute, restores the right of victims to hold the firearm industry responsible for its misconduct. In the amicus brief, the coalition argues that New York’s statute is in line with individual states’ longstanding authority to advance laws and policies that protect consumers from harms committed by manufacturers and sellers. 
  • A coalition of 14 state attorneys general filed an amicus brief supporting the U.S. Chamber of Commerce’s motion for summary judgment in a case against the Consumer Financial Protection Bureau. The case critiques the CFPB’s update to the “examination manual” that allegedly incorporated overly broad and unreasonable new anti-discrimination laws going beyond the statutory authority established in the Dodd-Frank Act.
  • South Dakota Attorney General Jackley was elected to a one-year term as chairman of the National Attorney General Alliance. The term began on Monday, January 9, 2023. The AGA mission is to create educational opportunities for its 48-member Attorney General offices and to collaborate on complex issues in law and public policy.

California

  • California Attorney General Bonta secured a preliminary injunction against nineteen nursing facilities operated under Mariner Health for violating federal and state laws and regulations over a five-year period. Attorney General Bonta alleged that Mariner Health violated California’s Unfair Competition Law and False Advertising Law by understaffing its facilities and subjecting its patients to negligent care while inflating their nursing facilities advertised ratings to the Center for Medicare and Medicaid Services. The injunction allows for oversight of five facilities to ensure compliance with staffing laws and oversight of all nineteen facilities to ensure compliance with discharge regulations.
  • California Attorney General Bonta issued a consumer alert following California Governor Newsom’s declaration of a state of emergency amidst the ongoing winter storms causing heaving rain and flooding. Attorney General Bonta reminds business owners that price gouging during a state of emergency is illegal under California Penal Code Section 396.

Colorado

  • Colorado Attorney General Weiser announced a refund to approximately 40 Coloradans after Flatirons, a medical billing company, allegedly sent deceptive billing notices that stated it was “not a bill” but expected consumers to pay. According to the settlement, Flatirons agreed to pay $12,933.89 in restitution.
  • Colorado Attorney General Weiser secured a $4 million settlement for Coloradan borrowers who are entitled to refunds of GAP fees from two credit unions, Bellco and Canvas. GAP, or guaranteed automobile protection, is often sold to car buyers who finance their purchase. An investigation by the Consumer Protection Section of the Colorado Department of Law revealed that Bellco and Canvas historically were not refunding unearned GAP fees owed to consumers. Bellco and Canvas additionally agreed to refund unearned portions of GAP fees in a timely manner moving forward.

District of Columbia

  • D.C. Attorney General Schwalb announced a settlement with Azure Health Services, LLC, which operated assisted-living facilities, resolving allegations that the company failed to pay frontline healthcare workers wages they earned during the COVID-19 pandemic. As part of the settlement, Azure will pay a total of $1,510,000.

Missouri

  • Missouri Attorney General Bailey announced a consent judgment against Vacation Consulting Services, LLC; VCS Communications, LLC; The Transfer Group, LLC; Real Travel, LLC; and their owner Brian Scroggs for allegedly failing to allow consumers to exit their timeshare agreements. Defendants agreed to settle the case for $800,000. This figure includes $700,000 in restitution for consumers, $50,000 in civil penalties, and $50,000 to the Missouri Practices Revolving Fund, which will help pay for the state to pursue other future actions on behalf of defrauded consumers.

Maine

  • Maine Attorney General Frey announced that the United States Supreme Court declined to review a challenge to Maine’s first-in-the-nation consumer protection law requiring cable companies to prorate customers’ final month of service. The law was originally set to go into effect in September of 2020, but was stalled when Spectrum filed suit in federal court arguing it was preempted by federal law. By declining to hear Spectrum’s petition, the Supreme Court has allowed the First Circuit’s ruling in favor of Maine and the legality of the law to stand.

Massachusetts

  • Massachusetts Attorney General Campbell announced a $3.5 million settlement with Aspen Dental Management, Inc. resolving claims that the company cheated Massachusetts consumers through bait-and-switch advertising campaigns. The consent judgment settles a lawsuit filed by prior Massachusetts Attorney General Healey in 2021, which alleged that Aspen Dental violated state consumer protection laws. The suit also alleged that Aspen Dental engaged in numerous deceptive advertising and marketing practices, such as charging for items marketed as “free” and incorrectly stating all insurances were accepted.

New Jersey

  • New Jersey Attorney General Platkin announced that the State has reached a settlement with Beacon Metals, a scrap metal company. The settlement resolves allegations that the company shortchanged consumers by using an inaccurate scale that provided short weight readings. The company has agreed to pay $128,838, the majority of the settlement going towards civil penalties.

New York

  • New York Attorney General James and the CFPB filed a lawsuit against Credit Acceptance Corporation, a large, subprime auto lender, for deceiving low-income New Yorkers into high-interest car loans. An Office of the Attorney General investigation found that CAC’s lending practices were deceptive and predatory. The lawsuit alleges that CAC pushed unaffordable loans onto thousands of low-income consumers.
  • New York Attorney General James announced an agreement with Bell Pet Company, LLC, d/b/a The Pet Zone, for misleading consumers about the health of the pets sold to New Yorkers. The agreement requires Bell Pet to pay a civil penalty and create a restitution fund of up to $200,000 to reimburse eligible consumers for medical costs. Bell Pet allegedly misled customers about the health of the pets that were purchased by providing incomplete medical records. 

Ohio

  • Ohio Attorney General Yost filed a lawsuit against six individuals and six companies that relied on illegal robocalls to identify sales leads for car warranties. The complaint alleges that the companies paid for leads to initiate outbound prerecorded calls to consumers to market and sell vehicle service contracts. Additionally, the calls failed to identify the caller and falsely claimed the call was regarding the consumers’ manufacturer-affiliated auto warranty.

Washington

  • Washington Attorney General Ferguson announced that a King County judge granted the Office’s motion for a preliminary injunction against Federal Way Discount Guns for selling unlawful high-capacity magazines. Attorney General Ferguson filed a lawsuit in December against Federal Way Discount Guns for illegally selling high-capacity magazines despite the ban on such products. The defendants face a maximum penalty of $7,500 for every time the store offered a high-capacity magazine for sale, and $7,500 for every time it illegally sold a high-capacity magazine.
  • Washington Attorney General Ferguson announced he will partner with Sen. Mark Mullet, and Rep. Gerry Pollet, to propose a bill in the next legislative session exempting Washington newspapers and eligible online news outlets from the state business and occupation tax. Newspapers currently pay a reduced business and occupation tax, but that preferential tax rate expiries in July of 2024.
  • Washington Attorney General Ferguson partnered with state legislators to propose legislation to create a Cold Case Investigations Unit within the Attorney General’s Office that will focus on solving cases of missing and murdered Indigenous women and people. The Missing and Murdered Indigenous Women and People Task Force has 23 members and started meeting in December 2021, the Task Force recommending the creation of the Cold Case Investigations Unit in August of 2022.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • Utah Attorney General Reyes and Oregon Attorney General Rosenblum announced a settlement with nursing, therapy, senior and assisted living provider Avalon Healthcare Management after a 2019 data breach involving the company’s email system. The settlement includes a $200,000 payment and requires Avalon to improve its data and information security systems.  

Arizona

  • Arizona Attorney General Brnovich filed a lawsuit against natural thyroid prescription drug manufacturer RLC Labs, alleging that the company made false or misleading statements about its products. Specifically, the lawsuit alleges that the company falsely advertised the potency of two of its products, continued to make false or misleading statements after a recall, and failed to honor its promise of refunds. The lawsuit seeks injunctive relief and consumer restitution.

Colorado

  • Colorado Attorney General Weiser announced the creation of a statewide taskforce to combat organized retail theft. The press release also states that a new state law went into effect on January 1, 2023, requiring companies that operate online marketplaces to help with certain measures to prevent the sale of stolen goods. Among other things, these companies must identify online sellers, verify sellers’ information, make certain seller disclosures to consumers, and provide an easy reporting mechanism for suspicious activity.

District of Columbia

  • The Washington, D.C. Attorney General’s Office announced that Brian Schwalb was sworn in on January 2, 2023 as the District’s Attorney General. Attorney General Schwalb previously served as a private practice trial lawyer and in the Tax Division of the U.S. Department of Justice. Among other things, Schwalb stated that as Attorney General he is committed to ensuring resources and opportunities are shared equitably, protecting and strengthening democratic rights, and maintaining accountability.

Michigan

  • Michigan Attorney General Nessel announced that the Michigan Public Service Commission denied DTE Electric Company’s request to implement a $12.6 million prepay program and rescind customer billing protections. The denial comes after the Attorney General’s Office intervened against the proposal.

New Jersey

  • New Jersey Attorney General Platkin announced a $27.375 million settlement with Yellowstone Capital LLC, its parent company Fundry LLC, and six associated companies, resolving allegations that they harmed small businesses with their merchant cash advance business, which was actually a predatory lending practice. The total settlement amount includes loan forgiveness, restitution, civil penalties, attorneys’ fees, and costs.

Ohio

  • Ohio Attorney General Yost announced eight lawsuits filed at the end of 2022 against businesses engaging in allegedly misleading and unlawful practices. Many of the lawsuits accuse companies, such as appliance-supply companies, a caterer, a furniture store, and landscaping/repair companies, of failing to complete work after accepting payments and/or failing to provide refunds. The lawsuits generally seek costs, consumer reimbursement, civil penalties, and injunctive relief.

Vermont

  • Vermont Attorney General Young announced that her office filed a lawsuit against hearing aid company Nano Hearing Aids for allegedly misleading consumers about its products’ quality and effectiveness. For example, the lawsuit alleges that the company falsely represented that its products were FDA-approved and made in the USA and promoted a deceptive online hearing test. The lawsuit seeks disgorgement, consumer refunds, and penalties.

Washington

  • Washington Attorney General Ferguson announced proposed legislation, the Robocall Scam Protection Act, which would hold telecommunications providers liable for allowing illegal robocalls. Specifically, the law would make it a violation of the state Consumer Protection Act to knowingly facilitate illegal robocalls (for voice service providers), robocall an individual on the Do Not Call Registry, or deliberately falsify one’s caller ID display. The bill also provides for both a private right of action and civil penalties.
  • Washington Attorney General Ferguson filed a lawsuit against plastic surgery provider Allure Esthetic and its owner for allegedly falsely inflating its online ratings on platforms including Yelp and Google. The company allegedly required employees to post fake positive reviews and pressured patients to remove negative ones. The lawsuit also alleges that the company edited “before and after” photos and applied for and kept rebates on patients’ behalf without consent. The lawsuit seeks injunctive relief, penalties, and restitution.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A multistate coalition of 17 attorneys general, led by West Virginia Attorney General Patrick Morrisey, submitted a Writ of Certiorari requesting that the U.S. Supreme Court review questions pertaining to the constitutionality of the Consumer Financial Protection Bureau (CFPB) in Consumer Financial Protection Bureau v. Community Financial Services Association of America Ltd. The U.S. Court of Appeals for the Fifth Circuit ruled the funding mechanism of CFPB, which was formed during the Obama administration and charged with regulating much of the financial services industry without substantial oversight from Congress, is unconstitutional. The Fifth Circuit’s decision is at odds with the D.C. Circuit, which saw no constitutional problem with the CFPB’s budgetary set-up.
  • A multistate coalition of 22 attorneys general filed an amicus brief in the U.S. Supreme Court in support of the Consumer Financial Protection Bureau’s (CFPB) petition for review of a Fifth Circuit decision finding that the agency’s funding mechanism is unconstitutional. The coalition argues that the CFPB has served as an invaluable enforcement partner to state attorneys general and that the Fifth Circuit’s reasoning threatens to invalidate past CFPB actions to the detriment of both the consumers protected by these actions and the financial service providers who have relied on these actions to guide their conduct.
  • A multistate coalition of 34 attorneys general submitted a letter to the U.S. Department of Transportation (USDOT) urging the department to strengthen protections for airline consumers and provide meaningful relief when flights are unexpectedly canceled or significantly delayed. The letter made a number of recommendations including that the USDOT require airlines to advertise and sell only flights that they have adequate personnel to fly and support; and, that the USDOT made clear that it will impose significant fines for cancellations and extended delays that are not weather-related or otherwise unavoidable.
  • Oregon Attorney General Ellen Rosenblum and Utah Attorney General Sean Reyes settled a data breach enforcement case against Avalon Healthcare Management. The $200,000 settlement stems from a 2019 data breach that exposed the personal information and protected health information of 14,500 Avalon employees and patients.

Arizona

  • Attorney General Mark Brnovich announced a settlement with Companion Pets, Inc., a pet store that sells puppies online and in retail locations in Arizona, resolving allegations of unlawful practices and misrepresentations in Companion Pets’ advertising and sale of dogs. In addition to paying $120,000 in restitution, the company agreed to make a number of changes to its business practices. For instance, the business agreed to clearly identify the source of the animals that it sells, accurately display the name and licensing of animal breeders and brokers, and not offer for sale dogs that come from breeders or brokers that have been cited with animal welfare violations.

California

  • California Attorney General Rob Bonta, alongside SBCS (formerly South Baby Community Services), shared tips and resources on how to donate safely and avoid scams while giving this holiday season.
  • California Attorney General Bonta also issued a consumer alert following the Governor’s declaration of a state of emergency for Humboldt County following a 6.4 magnitude earthquake near the Cities of Ferndale and Rio Dell, reminding Californians that price gouging during a state of emergency is illegal under Penal Code Section 396.

Connecticut

  • Connecticut Attorney General William Tong publicized that Reeha LLC, owner of a Litchfield-based gas station, has paid $2,400 for failure to lower its prices by 25 cents per gallon on April 1 as required by the gas tax holiday suspension. An investigation by the Office of the Attorney General found that Reeha did not lower its price until April 10.

District of Columbia

  • Washington D.C. Attorney General Karl A. Racine announced a settlement with Solid Brick Ventures LLC, owner and manager of the rent-stabilized Hawaii-Webster Apartments, resolving allegations that the company intentionally neglected the property and forced tenants to live with hazards like mold, crumbling lead paint, and pervasive infestations of vermin. Under the terms of the settlement, the property owners, will complete renovations and pay $1,000,000 to the District—the majority of which will be used to provide restitution to tenants.
  • The Office of the Attorney General for the District of Columbia reached a settlement with Express Homebuyers to resolve its lawsuit against the company for its deceptive letters claiming that homeowners were at risk of foreclosure and owed back taxes. The company will pay $70,000 in penalties to the District of Columbia.

Florida

  • Florida Attorney General Ashley Moody secured monetary relief for consumers who were reportedly deceived by a pet store that sold sick or dying puppies. A consumer protection investigation against Hoof’s Pets, Inc., doing business as Petland Orlando East and Petland Waterford Lakes, revealed consumer complaints alleging Petland misrepresented the health and quality of the puppies sold, dishonored pet warranties and violated parts of Florida’s Pet Lemon Law. Following Attorney General Moody’s action, Petland has paid more than $200,000 in monetary relief to consumers.
  • Attorney General Moody also sued two hot tub and spa companies for deceptive business practices. Alejandro Flores-Ramirez, owner of Affordable Spa Covers and Coverlex, deceived consumers with fake fast-delivery estimates and expedited shipping fees. According to an investigation by Attorney General Moody’s Consumer Protection Division, Ramirez operated the spa cover retail and manufacturing businesses that accepted payments for hundreds of goods that arrived months after the promised delivery day or were never delivered at all.
  • Attorney General Moody secured more than $13 million in an antitrust case against major automotive parts manufacturers. The funds come at the conclusion of an investigation against more than 60 manufacturers, including Panasonic and Mitsubishi Electric. The investigation into the companies’ conduct found evidence of the manufacturers fixing prices and rigging contract bids.

Indiana

  • Indiana Attorney General Todd Rokita warned Indiana residents about scams in the wake of winter weather emergencies.

Iowa

  • Iowa Attorney General Tom Miller and the Iowa Division of Banking reached a settlement with the Transportation Alliance Bank and EasyPay. Following Miller’s allegation that the Transportation Alliance Bank failed to comply with the Iowa Consumer Credit Code, the bank must now cease issuing loans in Iowa that exceed the state’s interest rate cap and provide refunds to consumers who were charged the illegal interest rates.

Maryland

  • Maryland Attorney General Brian E. Frosh publicized that his Consumer Protection Division reached a settlement with mortgage lender Caliber Homes, Inc. concerning its advertising practices. Caliber was accused of sending mailers to approximately 220,000 Maryland consumers between May 2019 through March 2021 that deceptively displayed the name and address of the consumers’ original mortgage on the mailer’s envelope.

Massachusetts

  • Massachusetts Attorney General Maura Healey announced that a mortgage servicing company will pay $975,000 and change its business practices to resolve allegations that the company failed to make required efforts to help homeowners avoid foreclosure and engaged in other unfair debt collection and mortgage servicing practices.

Michigan

  • In advance of the winter storms, Michigan Attorney General Dana Nessel reminded residents to be alert for government imposters or bad actors attempting to provide relief in emergency situations, and to know the law if their vehicle is towed due to an emergency situation.

New Hampshire

  • New Hampshire Attorney General John M. Formella announced a settlement with DMO Auto Acquisitions, LLC resolving allegations that the company engaged in the use of deceptive sales pitches, fraudulent inflation of customer income, and forgery of loan documentation. DMO has agreed to pay restitution to customers, $1.25 million to the attorney general, and to implement a number of business practices to avoid similar actions in the future.

New Jersey

  • New Jersey Acting Attorney General Matthew J. Platkin and the Division of Consumer Affairs announced settlements with six car dealerships totaling more than $260,000 to resolve allegations of consumer protection violations. The dealerships allegedly failed to list prior accidents, damage, and repairs made to vehicles; failed to honor the advertised price of a used car; charged excessive vehicle preparation fees that were not itemized or properly disclosed to the consumer; failed to provide a written warranty; failed to disclose the full sale price of a motor vehicle; and engaged in deceptive advertising. The dealerships will pay civil monetary penalties, fees, and costs. The dealerships have also agreed to injunctive relief that prohibits them from engaging in unfair or deceptive acts or practices. 

New York

  • New York Attorney General Letitia James announced a settlement with Herff Jones, a student cap and gown producer, resolving allegations that the company failed to protect consumers’ personal information after an April 2021 data breach exposed the credit card information of thousands of consumers.
  • New York Attorney General Letitia James filed a lawsuit against Cold Spring Hills Center, a nursing and rehabilitation center, for allegedly engaging in financial fraud and self-dealing that led to severe understaffing and resident neglect and harm. According to the complaint, Cold Spring Hills’ owners diverted over $22.6 million in Medicaid and Medicare funds from resident care through a fraudulent network of companies. In addition, the owners allegedly cut staffing at the 588-bed facility, which created poor working conditions and endangered residents. The lawsuit seeks injunctive relief, damages, and civil penalties.
  • New York Attorney General Letitia James announced a settlement with Stewart Title Guaranty Corporation, one of the largest title insurance underwriters, ending Stewart’s harmful no-poach agreements with its competitors and requiring a payment of $2.5 million for those agreements.
  • Attorney General James issued an alert reminding consumers and businesses across the state against price gouging during and in the aftermath of Winter Storm Elliott. She also cautioned consumers and businesses not to price gouge children’s painkillers and fever reducers as the demand increases for those medications because of this year’s “tripledemic” of COVID-19, RSV, and the flu.

Massachusetts

  • Massachusetts Attorney General Maura Healey announced a settlement with Thomas E. Theriault, a Haverhill landlord, resolving allegations that he presented falsified documents to obtain $20,000 in housing subsidies from the Department of Housing and Community Development. In addition, Theriault allegedly did not have the apartments inspected, and instead knowingly changed the dates on outdated certificates of occupancy for two rental units. According to the settlement, Theriault will pay the state double damages of $40,000 and is permanently barred from accepting any type of rental housing payment or subsidy from the state in the future.

North Carolina

  • North Carolina Attorney General Josh Stein announced that North Carolina’s price gouging law is in effect after Governor Roy Cooper declared a statewide state of emergency ahead of freezing weather. In North Carolina, the price gouging statute goes into effect when the governor or the legislature declare a state of emergency.

Pennsylvania

  • Pennsylvania Attorney General Josh Shapiro announced a lawsuit against Florida-based MV Realty PBC, LLC and its founder, Amanda Zachman for allegedly violating state consumer protection laws. According to the complaint, defendants misled consumers in the state regarding the terms of the company’s so-called Homeowner Benefit Program and obtained mortgages on consumers’ homes without their knowledge. Allegedly, consumers who attempted to withdraw from the program faced the risk of substantial penalties or faced the risk of having a mortgage placed against their property. The lawsuit seeks injunctive relief, damages, and civil penalties.

Washington

  • Washington Attorney General Bob Ferguson filed a lawsuit against Albertsons, Kroger and Rite Aid, whose pharmacy chains helped fuel Washington state’s opioid epidemic. Ferguson asserts the pharmacies served as the last line of defense in the opioid supply chain and failed in their collective responsibility to prevent the overuse of opioid prescriptions. Attorney General Ferguson also announced resolutions with five other companies that produced or sold opioids, bringing Washington’s total recovery to more than $1.1 billion to fund opioid abatement and treatment programs.
  • Attorney General Ferguson also announced that Lakewood-based WGS Guns will pay $15,000 for intentionally violating Washington’s high-capacity magazine sales ban.

West Virginia

  • West Virginia Attorney General Patrick Morrisey urged residents to be wary of calls during the holiday season claiming that grandchildren need help. Scammers have been known to call senior citizens pretending to be their grandchild or claiming to be law enforcement with news about a loved one.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • The National Association of Attorneys General sent a letter on behalf of 51 state and territory attorneys general to the Federal Communications Commission in response to a request for comments on an FCC proposal to help cut down on unwanted text messages. The letter expresses the attorneys general support for the proposal, which requires mobile wireless providers to block texts from invalid, unassigned and unused numbers. These efforts continue attorneys general work to reduce the number of robocalls that American consumers face. The attorneys general are requesting the FCC to push the wireless industry to develop call authentication technology for text messages.
  • A multistate bipartisan coalition of 33 attorneys general announced a settlement with JUUL Labs for $435 million. This settlement resolves a two-year multistate investigation into the e-cigarette manufacturer’s marketing and sales practices. Beyond the monetary terms, the settlement requires JUUL to comply with strict terms limiting marketing and sales practices. JUUL, as one of the largest players in the vaping market, was investigated for targeted youth advertising, ineffective age-verification techniques, and misleading nicotine disclosures. The settlement is still subject to final approval by the court.
  • A multistate coalition of 16 attorneys general filed an amicus brief in Glacier Northwest Inc. v. International Brotherhood of Teamsters Local Union No. 174 defending workers’ right to strike and the National Labor Relations Act. When a strike was called, some Glacier drivers were in the process of delivering concrete and stopped delivery to participate in the strike, which made the concrete unusable. The Washington Supreme Court found that economic harm may be inflicted through a strike as a legitimate bargaining tactic and the amicus brief highlights National Labor Relations Board rulings that protect strikes exerting economic pressure in the form of product loss.
  • Following a multistate coalition of 13 attorneys general filing a motion to intervene with FERC regarding Vanguard’s request for blanket authorization to buy significant quantities of utility companies’ shares, Vanguard announced it will withdraw from a major investment industry initiative committing to an ESG climate agenda. Vanguard reviewed the Net Zero Asset Managers initiative and stated it was best to “maintain its freedom not to restrict its investment options.” Utah Attorney General Reyes said, “This is a first step toward unwinding a global, cross-industry collusion that threatens the retirement incomes, jobs, and energy needs of Utahns and all Americans.”
  • Minnesota Attorney General Ellison and North Carolina Attorney General Stein, in conjunction with the Consumer Financial Protection Bureau, announced $95 million in student loan relief for those harmed by the Consumer Advocacy Center, also known as the Premier Student Loan Center. The restitution will go to over 87,000 consumers across the nation. The attorneys general sued the student loan companies for violating consumer protection laws with deceptive student loan debt relief services.
  • A multistate coalition of 14 attorneys general filed a brief in opposition to a new rule implemented by the Consumer Finance Protection Bureau. This coalition argues that the new rule seeks to expand the CFPB’s authority to encompass practices that Congress purposefully did not grant the CFPB the power to regulate, such as acts of discrimination in the consumer finance industry.
  • The National Association of Attorneys General announced the recipients of its annual awards during the organization’s annual Capital Forum on December 7. Nebraska Attorney General Peterson and District of Columbia Attorney General Racine were the recipients of this year’s Kelley-Wyman Award, the Association’s most prestigious honor that is given annually to attorneys general who have done the most to advance the objectives of the group.

Alaska

  • Alaska Attorney General Taylor filed a lawsuit against Simple Save Protection LLC, a Missouri company, that markets vehicle service contracts. The lawsuit alleges the company sent deceptive mailers to Alaskans designed to misled the recipients and indicate false urgency to consumers.

California

  • California Attorney General Bonta, in conjunction with the U.S. Department of Justice, announced two settlements against three Southern California Medi-Cal providers for submitting fraudulent claims to Medi-Cal in violation of state and federal False Claims Acts. The providers include Dignity Health and Twin Cities Community Hospital and Sierra Vista Regional Medical Center, which are both operated by Tenet Healthcare Corporation. The settlements totaling $22.5 million resolve allegations that the three providers submitted false claims to Medi-Cal as part of an organized scheme to retain federal funds.

Florida

  • Florida Attorney General Moody announced a lawsuit against three individuals, two holding companies and multiple moving brokerage businesses doing business under a variety of names, including Gold Standard Moving and Storage. The businesses allegedly acted as a common enterprise to deceive Florida consumers, hiring third-parties to complete the work, providing subpar services, and refusing to provide refunds. The defendants used various names to allegedly dodge bad reviews.

New York

  • New York Attorney General James announced a $1.5 million settlement agreement with Major Energy, an energy service company, that allegedly deceived and misled thousands of New Yorkers across the state. Attorney General James originally sued Major Energy for alleged dishonest business practices leading to New York consumers paying substantially more for their gas and electric services in January of 2022. In addition to the $1.5 million Major Energy will pay in restitution, it must also take action to prevent deceptive practices in the future such as customer service training, recording telephonic customer service interactions, and monitoring sales calls.

Virginia

  • Virginia Attorney General Miyares announced restitution checks totaling almost $200,000 were mailed to consumers due to two judgments entered against Service Dogs by Warren Retrievers, Inc. and its founder. Attorney General Miyares filed suit against the organization for alleged violations of the Virginia Consumer Protection Act and Virginia Solicitation and Contributions law. Customers did not receive trained service dogs as advertised. Further, the organization misrepresented the payment structure and affiliations with local police and the military. 

Washington

  • Washington Attorney General Bob Ferguson announced a consumer protection lawsuit against Federal Way Discount Guns, and its owners, for illegally selling high-capacity magazines despite Washington’s ban on such products. The lawsuit seeks an injunction that would block the store from selling high-capacity magazines. The lawsuit follows a statewide investigation of gun dealers conducted by the office of the attorney general and marks the first enforcement of the state’s sales ban on high-capacity magazines. Investigators visited Federal Way Discount Guns four times and during each purchase the sales clerk either destroyed the record of the sale or indicated awareness that the sale was illegal.

Wisconsin

  • Wisconsin Attorney General announced a settlement with Missouri-based US Automotive Protection Services, LLC (USAPS), which resolved Wisconsin’s claims against the company for violations of the State’s direct-mail marketing laws. USAPS mailers allegedly misled consumers into taking immediate action regarding vehicle warranties. The consent judgment includes a permanent injunction, civil forfeitures, and reimbursement of the state’s costs.

Each week, Crowell & Moring’s State Attorneys General team highlights significant actions that State AGs have taken. Here are this week’s updates.

Multistate

  • A multistate coalition of attorneys general announced a settlement with CarMax Auto Superstores, Inc. requiring the company to disclose open unrepaired recalls related to the safety of used automobiles before consumers purchase them and to then receive consumers’ signatures before presenting additional sales paperwork. CarMax will use the National Highway Traffic and Safety Administration’s vehicle identification number tool to provide this information. The settlement also includes payment of $1 million in penalties.
  • A multistate coalition of attorneys general filed an amicus brief at the United States Supreme Court in Gonzalez v. Google, asking the Court to interpret Section 230 of the federal Communications Decency Act narrowly to make sure that technology companies are accountable to state consumer protection laws for conduct that harms consumers.
  • A multistate coalition of 18 attorneys general is seeking clarification from FedEx about its new policies to track firearm sales and potentially to create a database of gun purchasers in the US. The coalition is concerned about the creation of a gun registry in violation of federal law. Specifically, the coalition is seeking clarification about the background of the new policy and a copy of FedEx’s new firearms shipping agreement.
  • A multistate coalition of 12 attorneys general, the California Air Resources Board, and the Ramsey County, Minnesota Attorney’s Office filed comments asking the Department of the Treasury and the Internal Revenue Service to implement the Inflation Reduction Act efficiently, equitably, and effectively to reduce greenhouse gas emissions, help states move to a clean energy economy, and create well-paying green jobs.
  • The California, District of Columbia, and Illinois attorneys general filed a motion for a preliminary injunction to block Albertsons’ planned $4 billion “special dividend” payment to shareholders while review of Albertsons’ and Kroger’s proposed merger is ongoing. The motion follows a lawsuit filed earlier in November and reflects concern that the special dividend would reduce Albertsons’ ability to compete, resulting in higher prices and a decrease in services for consumers.

Arkansas

  • Arkansas Attorney General Rutledge announced a settlement with the owners of Country Medical Services of Arkansas, Inc. for failing to protect sensitive patient information after a subsidiary hospital closed eight years ago, violating the Patient Information Protection Act and the Arkansas Deceptive Trade Practices Act. The settlement includes a suspended $730,000 civil penalty, requires the owners to repay over $40,000 to consumers, provides for lawful document destruction, and prevents the company from owning or operating a business in the state.

Colorado

  • Colorado Attorney General Weiser announced that three individuals who owned former business Microforce have pleaded guilty to criminal charges for deceptively advertising and selling a deodorizer that they knew could not kill COVID-19 and prevent the recontamination of surfaces during the pandemic. The company had received an advisory letter from the U.S. Environmental Protection Agency putting it on notice that the product was only authorized for deodorizing and not disinfecting and yet continued to make the false claims.

District of Columbia

  • District of Columbia Attorney General Racine filed a lawsuit against online orthodontics company SmileDirectClub for allegedly requiring consumers who were dissatisfied or harmed to sign nondisclosure agreements to receive refunds, thus stopping these consumers from reporting their problems to government regulators and law enforcement and suppressing negative reviews. The lawsuit seeks injunctive relief, restitution, civil penalties, fees, and costs.
  • District of Columbia Attorney General Racine announced a lawsuit against Pro Football Inc., owner of the Washington Commanders, for allegedly scheming to cheat ticket holders out of season ticket deposits and using the money for its own aims. The lawsuit seeks financial penalties and a court order forcing the Commanders to cease these practices and pay D.C. ticket holders restitution.

Florida

  • Florida Attorney General Moody filed a lawsuit against VoIP service provider Smartbiz Telecom, LLC, seeking to stop the foreign-based robocalls the company was routing into the United States. The lawsuit seeks injunctive relief, restitution, and civil penalties.

Kansas

  • Kansas Attorney General Schmidt filed a lawsuit against leading national insulin manufacturers and pharmacy benefit managers. The lawsuit alleges that the manufacturers violated the Kansas Consumer Protection Act by operating an insulin pricing scheme causing consumers to pay excessive costs for insulin.

Massachusetts

  • Massachusetts Attorney General Healey announced a lawsuit against limited liability company Bedrock Group LLC and its owners for failing to return $3.4 million to the state for N95 face masks that were not delivered during the pandemic and instead using the monies to pay for personal expenses. The lawsuit seeks to recover the full amount the State paid to Bedrock, treble damages, civil penalties, and attorney’s fees.

New Jersey

  • New Jersey Attorney General Platkin announced that the NJ Bureau of Securities secured a cease and desist order against online entity Buy Cannabis Stocks Investments Inc. a/k/a BCSI Inc., stopping it from offering unregistered securities in the form of investment packages related to marijuana and associated products, which violates state securities laws.

New Mexico

  • New Mexico Attorney General Balderas announced that his office resolved the opioid litigation against Kroger Co., resulting in a $58.5 million settlement.

New York

  • New York Attorney General James announced an agreement with Marks Homecare Agency Inc. and Martin Ganz, requiring them to stop entering into anti-competitive no-poach agreements in the future. A previous investigation found that Ganz entered into an illegal agreement on behalf of the Company with a competing home care company to not take each other’s patients. Marks Homecare Agency Inc. and Martin Ganz will pay $550,000 in penalties.

Washington

  • Washington Attorney General Ferguson released his seventh annual data breach report, revealing that data breaches are still at record-breaking severity. The report also includes proposed reforms to protect consumers’ data privacy, particularly sensitive reproductive health care data, such as passing legislation to protect health data, requiring additional transparency from data brokers and data collectors, expanding language access to data breach notifications, and passing legislation requiring companies to recognize and honor “global opt-out” preference signals.