Antitrust

New York Attorney General Opposes Taxi and Limousine Commission Rule

  • In a letter to the New York City Taxi and Limousine Commission, New York AG Eric Schneiderman urged the Commission to revise its proposed rule that would require for-hire vehicle companies to agree in writing before allowing their drivers to accept dispatches from rival companies.
  • The proposed rule would prohibit for-hire vehicle drivers – many of whom operate as independent contractors – from accepting fares outside of their primary dispatching company, a practice that allows drivers to reduce downtime between dispatches, increasing driver efficiency and shortening customer waiting time.
  • AG Schneiderman indicated that the proposed rule raised serious antitrust concerns by encouraging agreements between competitors, ultimately leading to higher fares and lower-quality service.

Consumer Protection

Florida Attorney General Claims Fraud Recovery Scheme is Deceptive

  • Florida AG Pam Bondi filed a lawsuit against Consumer Collection Advocates Corp. (CCA) and its principal, Michael Robert Ettus, for allegedly violating the Florida Deceptive and Unfair Practices Act and the Florida Telemarketing Act.
  • The lawsuit alleges that CCA targeted previous fraud or scam victims by promising to recover their lost funds in exchange for upfront payments and a percentage of any recovery. The lawsuit further alleges that CCA rarely succeeded in recovering victims' lost funds.
  • The Federal Trade Commission (FTC) filed a similar lawsuit against CCA and Ettus in federal court in the Southern District of Florida. In that suit, the FTC seeks injunctive relief, restitution, disgorgement, and costs.

Nevada Attorney General Settles with Hormone Therapy Provider

  • Nevada AG Catherine Cortez Masto reached a $9.5 million settlement to resolve claims that Wyeth Pharmaceuticals Inc. and Wyeth LLC (both acquired by Pfizer Inc. in 2009), and Pharmacia & Upjohn Company LLC (acquired by Pfizer in 2003) allegedly mislead consumers about the safety and efficacy of certain hormone treatments for postmenopausal women in violation of the Nevada Deceptive Trade Practices Act.
  • As part of the settlement, Pfizer agreed to donate $8 million to fund women's health care programs at the University of Nevada School of Medicine and University Medical Center. In addition, Pfizer will pay $1.5 million to offset investigation costs.

Environment

Missouri Attorney General Secures $7.3 Million From Lead Mining Companies

  • Missouri AG Chris Koster announced a $7.3 million settlement with Cyprus Amax Minerals Company and Missouri Lead Smelting Company for alleged violations of the U.S. Comprehensive Environmental Response, Compensation and Liability Act of 1980, the U.S. Clean Water Act, and the Missouri Clean Water Law.
  • The claimed environmental damages at the core of the settlement stem from lead mining and smelting operations at the Buick Mine during the period 1968 to 1986.
  • The settlement included the U.S. Department of Interior, Fish and Wildlife Service and the U.S. Department of Agriculture, Forest Service, and has been lodged as a consent decree in U.S. District Court for the Eastern District of Missouri.

Vermont Attorney General Sues Landfill for Failure to Control Odors

  • Vermont AG William Sorrell filed a lawsuit against Moretown Landfill Inc. for alleged violations of the Vermont Solid Waste Management Rules, Air Pollution Control Regulations, Water Pollution Control statute, and other violations relating to facility certifications and permits.
  • The AG's lawsuit alleges that Moretown failed to capture and control certain landfill gases, maintain safe leachate levels, prevent windblown debris, and conduct random load inspections. The lawsuit seeks civil penalties and costs.

False Claims Act

Oklahoma Attorney General Settles With Dental Practice

  • Ocean Dental, P.C., has agreed to pay $5,050,000 to settle claims brought by Oklahoma AG Scott Pruitt, working together with the U.S. Attorney for the Western District of Oklahoma, based on alleged violations of the U.S. False Claims Act.
  • AG Pruitt and the U.S. Attorney alleged that during the period 2005 to 2010, dentists working for Ocean Dental submitted false claims to the Oklahoma Medicaid program by billing for more dental work than was actually performed.
  • In 2012, in a related criminal case, one of the dentists associated with Ocean Dental's conduct pled guilty to health care fraud, and was ordered to pay $375,672 in restitution to Medicaid and to serve 18 months in federal prison.

Mortgages/Foreclosures

Colorado Attorney General Settles With Foreclosure Firms

  • Colorado AG John Suthers settled with three law firms alleged to have violated the Colorado Consumer Protection Act and the Colorado Fair Debt Collection Practices Act by charging improper and inflated fees for foreclosure-related services.
  • The firms Janeway Law Firm, Medved Dale Decker & Deere, LLC, and the Law Office of Michael P. Medved, and their principals, agreed to pay $1.8 million, collectively, in restitution, costs, and fees, along with an additional $1.1 million of suspended fees if they fail to comply with the consent judgment. The consent judgment requires the firms, among other things, to avoid the use of affiliated third-party vendors and to charge only the actual amount incurred for the services of third-party vendors.
  • AG Suthers previously settled with the firm Aronowitz & Mecklenburg, LLP, for $13 million and has filed suit against Castle Law Group based on similar claims. According to AG Suthers, these two firms handle the majority of foreclosures in Colorado.

States v. Federal Government

At Supreme Court, Maryland Fights for the Right to Tax Income Earned Outside the State

  • On November 12, The U.S. Supreme Court heard oral argument in Comptroller of the Treasury of Maryland v. Wynne. The case centers on the scope of authority a state has to tax income earned in other states.
  • Maryland AG Douglas Gansler argued that states have the authority to tax residents' income earned in other states, even where the residents can demonstrate that they paid income taxes to another state on that quantum of income.
  • The case is on appeal from a 2013 decision by the Maryland Court of Appeals, holding that Maryland's tax scheme violated the Commerce Clause of the U.S. Constitution. Specifically, the court ruled that Maryland's lack of a credit against Maryland taxes for income-related taxes paid in other states created a barrier to interstate commerce.

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