Each week, Crowell & Moring's State Attorneys General team highlights significant actions that State AGs have taken. See our State Attorneys General page for more insights. Here are last week's updates.
Multistate
- A coalition of 11 state attorneys general petitioned the EPA to enact a rule that would create uniform labeling requirements across the country and preempt California's Prop 65. The AGs argue that a national, uniform set of requirements will reduce "needless, years-long litigation" and increase certainty among manufacturers and farmers about their compliance obligations.
- A coalition of 15 state attorneys general challenged a final rule promulgated by the Centers for Medicare & Medicaid Services (CMS) which expands the definition of "lawfully present" to include beneficiaries of Deferred Action for Childhood Arrivals (DACA). This designation makes these individuals eligible for coverage under the ACA, which the coalition argues is unlawful.
- A coalition of 25 state attorneys general challenged a final rule promulgated by the ATF which classified a pistol with a stabilizing brace as a "short-barreled rifle." On August 9, the Eighth Circuit Court of Appeals enjoined the rule, reversing a decision by the lower court.
- A coalition of 19 state attorneys general filed an amicus brief urging the Eighth Circuit Court of Appeals to revisit an opinion that struck down a Minnesota law prohibiting individuals under the age of 21 from carrying concealed handguns in public. The coalition seeks a rehearing en banc, arguing that the opinion as issued "will raise questions about the constitutionality of similar statutes in more than 30 other states with age restrictions on firearms access."
- A coalition of seven state attorneys general issued a statement after they successfully obtained an injunction blocking the Biden-Harris administration's student loan forgiveness program. The Eighth Circuit Court of Appeals enjoined the hybrid policy that the Biden-Harris administration had begun to implement after its initial loan forgiveness program was enjoined because "the Government continues to work the same irreparable harm...that the district court sought to enjoin."
- A coalition of three state attorneys general announced a $4.5 million settlement with Enzo Biochem, Inc. for failing to adequately safeguard the personal and private health information of its patients. The AGs alleged that Enzo's employees engaged in information management practices that significantly increased the risk of cyberattack, which ultimately resulted in a hack of Enzo's system that compromised information for 2.4 million patients.
California
- California Attorney General Rob Bonta sent a letter to the CFPB in support of the Bureau's Proposed Rule which would prohibit the reporting of medical debt on credit reports. AG Bonta argues that medical debt is often unforeseen and not a reliable indicator of financial risk, yet the reporting of that debt can prevent consumers from getting loans, renting an apartment, or getting a job.
Massachusetts
- Massachusetts Attorney General Andrea Joy Campbell announced a $600 million settlement with tobacco manufacturers. This settlement resolves disputes over annual payments required under the 1998 Master Settlement Agreement in which tobacco companies agreed to cease a variety of harmful marketing practices and make payments to offset medical expenses caused by the use of their products.
New Jersey
- New Jersey Attorney General Matthew Platkin urged New Jersey investors to redeem virtual assets remaining in their accounts on the Abra trading and lending platform as the California-based crypto company winds down its operations in the U.S. following a multistate investigation into Abra's sale of interest-bearing crypto accounts. Abra and its CEO and founder William John "Bill" Barhydt have agreed to refund all virtual assets remaining on the Abra platform as part of a settlement in principle that would resolve allegations they sold the interest-bearing accounts in violation of state securities laws. The settlement also assesses an administrative penalty, which will be suspended if Abra and Barhydt comply with the process to return all assets owned by New Jersey investors.
New York
- New York Attorney General Letitia James announced that her office has secured $1.5 million in "monetary relief" in a settlement with digital marketing company 4K Apps, Inc. for operating a network of websites that misled tens of thousands of New Yorkers seeking mental health services, substance abuse treatment, and senior living facilities. The directory-style design of the websites conveyed the false impression that the phone numbers were associated with the listed entities, when in reality all phone numbers would connect callers to a call center operated by a 4K Apps client. 4K Apps admitted no wrongdoing, but agreed to fully comply with Executive Law § 63(12), which authorizes the AG to pursue repeated fraudulent or illegal acts, and General Business Law §§ 349 and 350, which prohibit deceptive acts and practices and false advertising.
Pennsylvania
- Pennsylvania Attorney General Michelle Henry announced that restitution checks totaling nearly $3 million will be sent to eligible consumers who did business with Progressive Leasing or Community Loans of America. Community Loans of America made "thousands of unlawful loans to Pennsylvania borrowers" and Progressive Leasing allegedly violated the Rental Purchase Agreement Act.
Rhode Island
- Rhode Island Attorney General Peter Neronha announced his office's opposition to rate increases proposed by health insurers who do business in Rhode Island. AG Neronha expressed a preference for structural reforms to the way health services are paid for, with an emphasis on fair and accurate distribution of costs across participants and "alternatives to traditional health insurance."
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