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 20 Republican AGs sent a letter to Costco's CEO urging the company to end its diversity, equity and inclusion (DEI) initiatives following President Donald Trump's recent executive order encouraging companies to end such policies. The letter comes in the wake of the company's public statements in support of maintaining its DEI policies. The attorneys general gave Costco 30 days to either notify them that the company has repealed its DEI policies or explain why it has not done so.
- A coalition of 16 Democratic AGs filed an amicus brief in the Sixth Circuit Court of Appeals in support of the National Highway Traffic Safety Association (NHTSA)'s fuel-economy standards for passenger cars, light trucks, and heavy-duty trucks. The underlying action involves Republican-led states and oil industry groups challenging these federal fuel-economy standards and California's zero-emission vehicle standards. The coalition argues that the NHTSA standards are designed to enhance fuel efficiency for vehicles and to benefit consumers across the country.
- A coalition of 12 attorneys general warned federal employees about President Donald Trump's "deferred resignation" program, which offered millions of federal employees continued pay and benefits and exemption from in-person work requirements until September 30th, provided that they resign by February 6. The Office of Personnel Management (OPM) sent the offer to federal employees on January 28. OPM's email urged employees to find "higher productivity" jobs outside the government, warning that they are not guaranteed their jobs if they do not resign. The coalition called the deferred resignation program "misleading" and urged employees to contact their union. The letter was signed by the AGs of Arizona, California, Connecticut, Delaware, Hawaii, Maryland, Michigan, Minnesota, New Jersey, New York, Washington, and Vermont.
- A coalition of 23 attorneys announced that the U.S. District Court for the District of Rhode Island granted their motion to halt the Trump Administration's order blocking federal grants, loans, and other financial assistance programs. On January 27, 2025, the Office of Management and Budget (OMB) issued a memorandum announcing the new policy, which would have put an indefinite pause on most federal assistance, including funds to health care, education, law enforcement, disaster relief, and more. The Trump administration has since rescinded the memorandum. The filing was led by New York and joined by California, Illinois, Massachusetts, New Jersey, and Rhode Island. Joining the lawsuit are the attorneys general of Arizona, Colorado, Connecticut, Delaware, Hawaii, Maine, Maryland, Michigan, Minnesota, Nevada, New Mexico, North Carolina, Oregon, Vermont, Washington, Wisconsin, and the District of Columbia.
- A bipartisan coalition of attorneys general announced a settlement in their lawsuit against the National Collegiate Athletic Association (NCAA) over protections for student-athletes' Name, Image, and Likeness (NIL) rights during the recruiting process. The coalition's lawsuit challenged the NCAA's NIL Recruiting Ban which prohibited prospective students from discussing NIL opportunities, which the lawsuit alleged violated federal antitrust law. The settlement permanently bars the NCAA from restricting a prospective student's NIL rights during the recruiting process. The lawsuit was led by Tennessee and joined by Virginia, Florida, the District of Columbia, and New York.
- A coalition of 20 attorneys general announced victory in a suit challenging the Federal Highway Administration's (FHWA) mandate requiring states to set strict emissions restrictions for vehicles traveling on interstate highways. In 2023, the coalition sued the FHWA alleging that the Biden Administration's mandate was an unconstitutional overreach and overly burdensome to the states. In April 2024, the U.S. District Court for the Western District of Kentucky struck down the mandate, agreeing with the coalition on both points. The Biden Administration appealed to the 6th Circuit, but the Trump Administration moved to voluntarily dismiss the appeal, allowing the district court's ruling to stand. The lawsuit was led by Kentucky and joined by Alabama, Alaska, Arkansas, Florida, Idaho, Indiana, Iowa, Kansas, Mississippi, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Utah, Virginia, West Virginia and Wyoming.
- A coalition of 21 attorneys general announced the U.S. District Court for the District of North Dakota's decision invalidating Council for Environmental Quality (CEQ) regulations implementing the National Environmental Policy Act (NEPA). NEPA broadly requires agencies to assess the environmental and public health impacts of federal permits, funding, and other actions. The CEQ regulations required federal agencies to specifically consider climate change and environmental justice in their NEPA analyses. In the lawsuit, the AGs argued that the government could not consider climate change and environmental justice policies in the "purely procedural" NEPA process and that the CEQ did not have rulemaking authority. The Court disagreed on the first point but agreed that the CEQ's actions were arbitrary and capricious because it did not have rulemaking authority. The lawsuit was led by North Dakota and Iowa and joined by Alaska, Arkansas, Florida, Georgia, Idaho, Kansas, Kentucky, Louisiana, Missouri, Montana, Nebraska, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming.
- A coalition of 20 attorneys general sent letters to Senate Judiciary Chairman Chuck Grassley and Ranking Member Dick Durbin urging the committee to require Kash Patel, President Trump's nominee for Director of the Federal Bureau of Investigation (FBI), to return for further questioning regarding alleged politically motivated firings at the FBI. The letter follows reports of FBI firings and efforts to compile a list of FBI agents involved in investigating the January 6th Capitol Insurrection. Letters were sent by attorneys general in Arizona, California, Colorado, Connecticut, Delaware, Hawaiʻi, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, and Washington.
California
- Attorney General Rob Bonta announced that his office has filed charges against a second Los Angeles based real estate agent for allegedly price gouging Eaton Fire victims who were evacuated from their homes and were seeking alternative housing. The office filed charges against the first realtor less than a week earlier. The California DOJ continues to actively investigate and prosecute price gouging in the state and has sent more than 650 warning letters to hotels and landlords who have been accused of price gouging. Violators of the state's price gouging statute are subject to criminal prosecution that can result in a maximum penalty of one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution.
- Bonta announced a nearly $1.2 million settlement against the Valley Rock Foundation, formerly known as the Edward A. Keith Foundation, and its directors Celeste White and Dr. Robert White. The settlement resolves allegations that the directors engaged in self-dealing transactions, unjust enrichment, and breach of fiduciary duty for receiving improper personal benefits from the Foundation's charitable assets. According to the settlement, in addition to paying approximately $1.2 million, the foundation will be required to dissolve and make a set of final grants totaling $10 million that will go towards community-based improvements.
Massachusetts
- Attorney General Andrea Joy Campbell announced that the Massachusetts Medicaid Program, MassHealth, received $1.4 million as part of a $47 million national settlement over allegations of kickbacks with pharmaceutical manufacturer QOL Medical, LLC (QOL). The settlement arose from a whistleblower lawsuit originally filed in the United States District Court for the District of Massachusetts. The lawsuit alleged that QOL made unlawful payments to a clinical laboratory to induce the purchase of Sucraid, its enzyme replacement therapy, in violation of the Anti-Kickback Statute and False Claims Act. Under the settlement, QOL admitted to distributing free Carbon-13 tests to health care providers to aid in their diagnosis of Congenital Sucrase Isomaltose Deficiency (CSID) which is treated by Sucraid, the only FDA-approved therapy for the disease. QOL also admitting to paying a clinical laboratory to analyze the Carbon-13 tests, then using that data to identify patients and contact those patients' providers to sell Sucraid. The settlement was negotiated by a team from the National Association of Medicaid Fraud Control Units which included representatives from Attorney General Campbell's Medicaid Fraud Division.
Minnesota
- Attorney General Keith Ellison announced a settlement with Novo Nordisk that will ensure Minnesotans can purchase Novo Nordisk's insulin products for $35 per month for the next five years, regardless of the individual's insurance status. The settlement resolves allegations that Novo Nordisk deceptively priced its insulin, requiring Minnesotans to pay high out-of-pocket costs.
- Ellison announced that the state filed a lawsuit against David Singleton, five Minnesota nonprofits that he operates, and his for-profit legal consulting business for alleged violations of the Minnesota Nonprofit Corporation Act, deceptive solicitation of donations, and violations of Minnesota's Consumer Fraud Act and Deceptive Trade Practices Act, and the unauthorized practice of law. The lawsuit alleges that Mr. Singleton has either founded or acquired nonprofits with government sounding names including Minnesota Civilian Public Safety Commission, League of Minnesota Human Rights Commissions, DWI Prevention Services Inc., Minnesota Police Reserve Officers Association (MPROA), and United Criminal Justice Reform Commission. None of these organizations are affiliated with Minnesota. Mr. Singleton allegedly used these nonprofits to drive business to his for-profit legal services business, despite not being licensed to practice law.
New York
- Attorney General Letitia James announced a settlement of $450,000 from three companies that distribute home security video cameras, resolving allegations that the companies failed to secure consumers' private home security videos. The companies, Fantasia Trading LLC, Power Mobile Life LLC, and Smart Innovation, LLC distribute a line of video cameras, video doorbells, and video smart locks under the eufy brand. An investigation by the Office of the Attorney General found that video streams from the cameras were not always securely encrypted and could be accessible to anyone with the relevant link without authentication. The settlement requires the defendants to create stronger protections for customers' data.
- James announced a settlement with a network of 25 lending companies, allegedly controlled by Yellowstone Capital (Yellowstone) and its officers. According to the complaint, the defendants exploited small businesses through fraudulent loans with high interest rates that were disguised as merchant cash advances. The settlement includes a $1.065 billion judgment against Yellowstone, with over $534 million of that paid by canceling all outstanding debts owed by small businesses, including over 1,100 across New York state and over 18,000 nationwide. The companies and the officers also immediately paid $16.1 million to be distributed to impacted small businesses. The Yellowstone companies will be liable for the remaining $514 million of the judgment.
- James announced an over $1 million settlement with Ouro Global, Inc. (Ouro) which owns Netspend Corporation (Netspend), a seller of reloadable debit and payroll cards. Attorney General James's investigation found that Netspend violated New York consumer protection laws by illegally freezing customers' accounts and turning over their funds to debt collectors. The investigation also found that Netspend charged illegal fees on its debit and payroll cards, operated a paycheck advance program with illegally high interest rates, and used misleading marketing materials regarding ATM fees. As part of the settlement, Netspend will pay over $735,000 to consumers affected by these activities and over $350,000 in penalties to the state. Netspend is also required to change its policies to comply with New York consumer protection law.
Pennsylvania
- Attorney General Dave Sunday announced a settlement with Rodney Hendricks, doing business as Hendricks Investments, resolving allegations that the landlord made unlawful deductions from security deposits and maintained poor living conditions for tenants. The settlement requires the defendants to follow the requirements of the Landlord/Tenant Act and the Pennsylvania consumer protection law, and it requires a payment of $30,000 which will be used to reimburse eligible tenants.
- Sunday announced the appointment of Darryl Lawrence as Pennsylvania's Interim Consumer Advocate. The Consumer Advocate monitors public utilities, including electric, natural gas, water, wastewater, and telecommunications, for issues with quality and pricing. Although the Consumer Advocate sits within the Attorney General's office, it functions independently. Additionally, the Consumer Advocate has the authority to intervene in litigation on its own behalf, having historically participated in matters before the Pennsylvania Utility Commission and state and federal courts. Mr. Lawrence will serve in the position until a permanent Consumer Advocate is appointed and confirmed.
Texas
- Attorney General Ken Paxton announced the filing of a lawsuit against Allstate and its subsidiary, Arity (Allstate), for allegedly violating the Texas Data Privacy and Security Act by unlawfully collecting, using, and selling data about the location and movement of Texans' cell phones through secretly embedded software in mobile apps, such as Life360. According to the complaint, Allstate and other insurers then used the data to justify raising Texans' insurance rates. The complaint seeks injunctive and monetary relief, such as civil penalties and attorney's fees and costs, and other equitable relief.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
