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 and the Consumer Financial Protection Bureau announced a $811 million judgment against bond services company Libre by Nexus, Inc., its parent company Nexus Services, Inc, and its principals, for using deceptive and abusive tactics to target immigrants in federal detention centers and their families. The original lawsuit was based on the Consumer Financial Protection Act, the Virginia Consumer Protection Act, the Massachusetts Consumer Protection Law, the Massachusetts Fair Debt Collection Practices Act, New York Executive Law § 63(12), and New York General Business Law § 349. The judgment includes injunctive relief, restitution to affected consumers, and civil penalties.
- A coalition of 17 state attorneys general submitted a comment letter supporting the Consumer Financial Protection Bureau's proposed overdraft fee rule, an amendment to its Truth in Lending Act regulations. Specifically, the proposed rule would require large banks to apply all consumer protections, including disclosures about interest rates, to overdraft fees. The coalition is writing in support of the rule and also requesting that the CFPB set the benchmark overdraft fee at $3.
- Several state attorneys general have filed a motion in the U.S. District Court for the Southern District of Texas, asking the court to take more aggressive action against John Caldwell Spiller II after Spiller violated permanent bans against robocalling and telemarketing. The attorneys general allege that he has set up at least three new businesses since their lawsuit began, alleging violations of state and federal telephone privacy and telemarketing laws. The attorneys general seek a ruling that Spiller cannot engage in any telephone-related services, an order that Spiller pay over $122.3 million in damages, and an order that Spiller dissolve his existing telephone service companies.
- A coalition of 28 Republican state attorneys general sent a letter to the U.S. Environmental Protection Agency, asking the agency to withdraw a proposed rule which would regulate meat and poultry processing plants under wastewater regulations. The coalition believes the rule exceeds the EPA's Clean Water Act authority and is concerned about the costs meat processing plants will incur under the rule.
- A coalition of 21 state attorneys general sent a letter to Congress, asking it to amend language in its 2018 Farm Bill that has been used to sell unregulated intoxicating hemp. Specifically, the coalition asks Congress to change the definition of hemp to clarify that there is no loophole for intoxicants. The coalition also asks Congress to reaffirm that it does not limit states regulation of cannabinoids or other intoxicating hemp derivatives.
California
- California Attorney General Bonta announced a settlement with corporate landlord Arnel Management Company, resolving allegations that it unlawfully withheld security deposits from tenants in Orange and Los Angeles counties by automatically deducting pre-set cleaning charges, in violation of Business and Professions Code section 17200, Civil Code section 1950.5, and Business and Professions Code section 17500. The settlement requires Arnel to pay more than $1 million in civil penalties and donations, and it must comply with injunctive terms.
New Hampshire
- New Hampshire Attorney General Formella announced that the Charitable Trusts Unit and Consumer Protection and Antitrust Bureau completed their reviews of the proposed transaction between Valley Regional Healthcare, Inc. and Dartmouth-Hitchcock Health, and that the Attorney General's office negotiated proposed terms to alleviate harm to health care consumers. Some of the terms include prohibitions on anticompetitive contracting, a Clinical Services Growth Plan, and annual reporting. Dartmouth-Hitchcock Health has also agreed to contribute $2 million to the Health Care Consumer Protection Trust Fund.
Massachusetts
- Massachusetts Attorney General Campbell announced a court order against VICA Trading, Inc. d/b/a VapeSourcing, requiring it to stop marketing and selling flavored tobacco products in the state. The order follows a lawsuit alleging that VapeSourcing violated Massachusett's flavored tobacco ban andConsumer Protection Act.
New York
- New York Attorney General James announced over $1.9 million in settlements with five Nissan car dealerships in Long Island and New York City, for allegedly overcharging consumers who wished to purchase their vehicles after their lease terms in violation of the Motor Vehicle Retail Leasing Act. Specifically, an investigation revealed that the dealerships added junk fees or falsified the vehicles' prices between 2020 and 2023, as well as provided deceptive invoices to consumers. The settlements include consumer restitution payments and civil penalties.
- New York Attorney General James announced an almost $230,000 settlement with contracting agency Allied Universal Security Services and the Board of Managers of a New York City condominium building for allegedly underpaying its contracted security guards in violation of Real Property Tax Law §421-a(8). Under the settlement, Allied Universal must pay the employees what they are owed plus interest as well as audit its contracts with all other New York City buildings and certify payment of prevailing wages.
North Carolina
- North Carolina Attorney General Stein announced a $2,100,000 settlement with Mako Medical Laboratories, LLC, resolving allegations that the business submitted false claims to the state Medicaid program, violating state Medicaid policy. Specifically, Attorney General Stein's office alleged that Mako conducted duplicative urine drug testing that was not medically necessary or reasonable.
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.