Iowa Attorney General Tom Miller is leading a group of 40 State Attorneys General in urging Congress to give state AGs the authority to enforce state consumer protection laws for federally chartered financial institutions. Miller and Washington Attorney General Robert McKenna organized a letter from the 40 state AGs as Congress considers legislation to create a Consumer Financial Protection Agency.
New York Attorney General Andrew Cuomo has filed the first antitrust lawsuit against computer chipmaker Intel in more than a decade. The lawsuit charges Intel with using large rebate offers and co-marketing arrangements to force various computer manufacturers, among them Dell, into using their chip rather than that of a smaller rival, AMD.
Connecticut Attorney General Richard Blumenthal contacted 13 makers and distributers of seasonal flu vaccines over allegations of high price fixing and preferred treatment for big retailers. The seasonal flu vaccines are in short supply due to the switch made by drug makers to produce the H1N1 vaccine.
New York Attorney General Andrew Cuomo filed a lawsuit with 14 other states in federal court in Massachusetts accusing Amgen Inc. and Amerisource of encouraging doctors to bill third-party insurers for samples they received for free. The companies also allegedly offered medical professionals kickbacks or weekend retreats for selling its drug.
Louisiana Attorney General Buddy Caldwell will examine the legal issues related to the upcoming 2010 national census and the resulting reapportionment of congressional seats in light of concerns expressed by U.S. Sen. David Vitter and others about the way non-citizens are counted.
One hundred million dollars from settlements with over a dozen insurance companies will go toward a new national database to help consumers understand insurance company reimbursements for out-of-network fees, New York Attorney General Andrew Cuomo said on Tuesday. Mr. Cuomo’s office had conducted an investigation into Ingenix and health insurance companies and determined that the industry systematically understated doctor’s fees for over a decade. Within a year, a nonprofit company, FAIR Health, will be set up to take the place of the private database and provide consumers with accurate information.
Eli Lilly & Co. agreed to pay $45 million to South Carolina to settle a lawsuit claiming the drugmaker improperly marketed its antipsychotic Zyprexa. South Carolina began the suit in 2007, alleging the Indianapolis-based company marketed the drug, approved for schizophrenia and bipolar disorder, for unapproved, or off- label, purposes.
The Attorneys General of New Jersey, New York, and, most recently, Montana, have vowed to sue FedEx Ground, claiming that the business’s classification of its truck drivers as independent contractors is a violation of state labor laws. About 30 states are investigating the FedEx Ground after many drivers have sued FedEx for the right to health benefits, union organization, and other rights not afforded to them under their current classification as independent contractors.
Jerry Brown, the Attorney General of California, has charged State Street Corporation with fraud, contending the State Street Currency traders consistently overcharged the two state pension funds for the costs of managing their accounts, cheating them of at least $56.6 million. A spokeswoman for State Street said the bank denied any allegations of wrongdoing and would defend itself against any litigation.
Several lawsuits brought by the Department of Justice against four pharmaceutical companies for failing to pay appropriate rebates to state Medicaid programs resulted in a $124 million settlement. The Attorneys General of New York, New Hampshire, and Ohio assisted with the investigation.
The office of Attorney General Jack Conway announced that a Franklin Circuit Court jury has handed down a $14.7 million verdict against global pharmaceutical giant AstraZeneca for defrauding the Medicaid program and Kentucky consumers by inflating the prices of their prescription drugs.
Martha Coakley, the Attorney General of Massachusetts, has filed lawsuits against four companies allegedly using deceptive practices to market discount medical plans that do not actually meet the state’s standard of minimum creditable coverage. Coakley’s office has proposed reforms to require sellers of health insurance in Massachusetts to fully disclose how their plans work.
In a letter to Kellogg’s, General Mills, and PepsiCo, Connecticut AG Richard Blumenthal raised concern about “Smart Choices” package labels. Designed to promote nutritional foods, the labels have been used nationally on many seemingly unhealthy products including sugary breakfast cereals and mayonnaise. Blumenthal’s investigation will ascertain whether the labeling campaign violates the state’s consumer protection law, which bars misleading or false product claims.
Bank of America waived its right to attorney-client privilege by handing over documents containing legal advice the bank received during its Merrill Lynch merger to the office of New York Attorney General Andrew Cuomo, who is investigating the merger. In a letter to Cuomo’s office, Bank of America says it will waive attorney-client privilege in five subjects.
The office of Connecticut Attorney General Richard Blumenthal negotiated for 200,000 doses of seasonal flu vaccine to be delivered to the state’s Visiting Nurse Association (VNA) for the elderly homebound population and emergency medical responders. Initially, the vaccine maker Novartis Vaccines and Diagnostic, Inc. said the Connecticut VNA would receive close to 30 percent fewer doses than it had ordered.
Raymond Harding, the one-time head of New York’s now-defunct Liberal Party, entered a guilty plea for a securities fraud involving more than $800,000 in kickbacks from investment companies doing business with New York’s public pension fund. State Attorney General Andrew Cuomo also announced a guilty plea by Saul Meyer, co-founder of the Dallas investment firm Aldus Equity, for various cases of fraud. Both Meyer and Harding have agreed to cooperate in a wider pension probe.
Oregon Attorney General John Kroger, along with Governor Ted Kulongoski, wrote an urgent letter to U.S. Attorney General Eric Holder in defense of undeveloped wilderness areas. The state AG supports the 2001 “Roadless Rule,” which had banned road building and commercial logging on 40 million acres of pristine forest land in 38 states and Puerto Rico, but was repealed under the Bush Administration. In August a three-judge panel of the 9th U.S. Circuit Court of Appeals reinstated the ban, which Kroger lauded. Attorneys General from four states filed suit to reinstate the ban: Oregon, California, New Mexico, and Washington.
Massachusetts Attorney General Martha Coakley and Department of Commissioner Phil Giudice have petitioned the U.S. Department of Energy to gain permission to enforce in their state a gas furnace efficiency standard that is stricter than the federal standard. In order to implement its stricter 90% efficiency standard rather than the federal 80% standard, Massachusetts needs a waiver from the Department of Energy.
Connecticut Attorney General Richard Blumenthal sent a notice to five state health insurers requesting materials that the insurers had sent to their customers concerning healthcare reform. Blumenthal and state healthcare advocate Kevin Lembo are trying to ascertain whether state health insurers are sending misleading materials to medicare recipients, just as federal officials investigate Humana, Inc. for allegedly sending deceptive material to its policyholders.
California Attorney General Jerry Brown has opened an investigation into ACORN and the circumstances surrounding a videotape that may show employees of the group giving advice about brothels. Governor Arnold Schwarzenegger urged the state Attorney General to prosecute the allegations, if true, under the fullest extent of the law.
Two lawsuits have been filed by Minnesota Attorney General Lori Swanson against companies that allegedly sold non-insurance health products to consumers disguised as credible insurance to consumers. The companies targeted Minnesotans in need of coverage.
California Attorney General Jerry Brown is suing the owners of Executive Financial Credit Services for repeatedly ignoring warnings to register with his office and post a $100,000 bond.The suit seeks a permanent injunction which would prohibit the company from operating illegally and seek civil penalties greater than $200,000 and restitution for the victims.
Pennsylvania Attorney General Tom Corbett and the Humane Society of the Unites States announced a reward program offering $5,000 for information leading to the arrest and conviction of individuals involved in illegal dog and animal fighting.
Minnesota Attorney General Lori Swanson filed a lawsuit against The Arthur Group, a Minneapolis-based headhunting company, accusing the company of fraud and deceptive trade practices. The lawsuit contends the company lured job seekers with the false prospect of accessing numerous job openings if the client paid as much as $4,500 for the company to improve their résumés and upgrade their interviewing skills.
Kansas Attorney General Steve Six announced the state will receive a $1 million grant from the Bureau of Justice Assistance to crack down on methamphetamine manufacturing and trafficking. The grant provides funds to train law enforcers and local prosecutors to build and prosecute complex meth cases.
J.B. Van Hollen, the Attorney General of Wisconsin, announced a settlement with engine manufacturer Dresser Inc. over alleged air pollution at a manufacturing facility. Dresser has agreed to pay penalties totaling $85,000.
Kentucky Attorney General Jack Conway filed a lawsuit against drug producer Merck & Co. over alleged violations of the Consumer Protection Act. Conway alleges the company deceptively promoted the anti-inflammatory Vioxx without mentioning risks of cardiovascular side effects of which they were aware.
Attorney General Richard Blumenthal announced an agreement with drug maker Eli Lilly and Company for marketing its antipsychotic drug Zyprexa for unapproved uses. The settlement recovers $25.1 million for money spent on illegal marketing pursuant with the Connecticut Unfair Trade Practices Act and requires stronger standards for marketing and transparency to prevent the company from rewarding physicians for reckless prescriptions.
Ohio Attorney General Richard Cordray filed a lawsuit on behalf of pension funds from Ohio, Texas, Sweden, and the Netherlands accusing Bank of America and four of its executives of concealing losses at Merrill Lynch and Co. ahead of a shareholder vote to approve the bank’s purchase of the company. This announcement is the latest legal challenge to the company over its acquisition of Merrill, as New York AG Andrew Cuomo, the Securities and Exchange Commission, a U.S. Treasury investigator, and Congressional lawmakers have all said to be investigating the deal. The present litigation attempts to recoup pension fund losses incurred when Bank of America’s share price fell after purchasing Merrill.
Massachusetts Attorney General Martha Coakley reached a settlement with Wal-Mart over allegations that the company violated the Massachusetts Meal-Break Law when workers were required to work more than six hours without a half-hour lunch break. Wal-Mart agreed to pay $3 million and to continue its use of electronic surveillance to document compliance with state and federal labor laws.
Andrew Cuomo, the Attorney General of New York, continued action against fraudulent immigration services in New York City by subpoenaing documents and testimonies from over thirty immigrant service organizations. The organizations under investigation allegedly pose as legitimate immigrant service providers and provide legal services they are not authorized to perform. Cuomo has also launched a web-based education campaign targeting immigration fraud.
Oklahoma Attorney General Drew Edmondson's federal lawsuit seeking to clean up the Illinois River watershed is heading for a trial this week. The state's suit charges that the overuse of poultry litter has contributed to the degradation of the Illinois River and other lakes and streams in the 1 million-acre watershed in eastern Oklahoma and western Arkansas.
New Jersey's attorney general has filed suit against Stevens Institute of Technology, its president and its chairman of the board of trustees, leveling a 16-count civil complaint against them. Acting under the authority of the New Jersey Non Profit Corporation Act and the Uniform Management of Institutional Funds Act, Attorney General Milgram has charged the abovementioned with various violations of financial and accounting practices.
Dell (NSDQ:Dell) will pay $4 million to the New York Attorney General's Office after being found guilty of taking part in deceptive business practices in the state of New York. As part of the agreement for restitution between the Attorney General's Office, Dell and Dell Financial services, Dell must make changes to its advertising, sales and financing and the way they will sell at-home or on-site services
New York Attorney General is reportedly preparing civil charges against several Bank of America executives for hiding details about the acquisition of Merrill Lynch. Cuomo's office is reportedly likely to charge executives for not alerting shareholders about mounting losses as well or accelerated bonus payments at Merrill.
Maine Attorney General Janet Mills has agreed with the groups challenging the state's Predatory Marketing Law as overbroad and a violation of First Amendment rights.
Ohio Attorney General filed the largest minimum wage cases in Ohio history on behalf of over 200 underpaid workers. The first, against a daycare center, seeks $408,000 for the minimum wages owed workers and $816,000 in required penalties and the second, against a developer and construction companies, seeks $508,000 in unpaid wages and the same amount in penalties.
California Attorney General Jerry Brown is looking into claims that the state's top health insurers reject about 20 percent of medical claims. He has stated that a high denial rate suggest the system itself is dysfunctional.
43 Attorneys General offices have reached a settlement with Pfizer Inc. in which the pharmaceutical company must change its marketing practices and pay $33 million to each state after resolving allegations that Pfizer used unfair and deceptive practices in marketing its anti-psychotic drug called “Geodon.”
The West Virginia Attorney General’s filed a lawsuit against CVS Pharmacy, Kmart, Kroger, Walgreen Pharmacy and Target alleging that they all violated a state law designed to promote use of generic equivalents for brand-name prescription drugs. The lawsuit contends that rather than pass on the savings to consumers from the substitution of less-expensive generic drugs, the pharmacies have instead pocketed them.
Massachusetts Attorney General Martha Coakley’s office reached a settlement with a Dedham real estate company and one of its employees after they allegedly violated state anti-discrimination laws by denying an African-American woman the opportunity to negotiate the purchase of a home in Dedham.
Ten state attorneys general and four federal agencies form a task force headed by Washington Attorney General Rob McKenna and Iowa Attorney General Tom Miller to combat mortgage fraud.
After obtaining a temporary restraining order to stop Property Tax Review Board, Inc., from mailing out any more fraudulent solicitations, Arizona Attorney General Terry Goddard filed a lawsuit against the homeowner property tax company. The company allegedly requested consumers to pay for services which the company could not provide.
Massachusetts Attorney General Martha Coakley entered into an agreement with a purchaser of Fremont servicing rights that will help 1,100 borrowers holding loans originated by Fremont to obtain loan modifications or some other form of foreclosure prevention. Prior to a recently settled enforcement action against Fremont by Coakely, their loans were allegedly “predatory and unfair.”
New York Attorney General Andrew Cuomo sued Charles Schwab & Co. on Monday over alleged misrepresentation to clients on the liquidity of auction-rate securities. Cuomo states that Schwab “misled its customers and sold them a product it did not fully understand and could not properly explain.”
Texas Attorney General Greg Abbot reached a settlement agreement after Alpha Therapeutic Corp. falsely reported inflated prices to the Medicaid program thus over-reimbursing providers for their drugs. The result was increased profits to providers and an unlawful market niche for the drug company throughout the 1990’s.
New York Attorney General Andrew Cuomo has issued cease-and-desist letters to forty car dealerships in New York claiming that they ran misleading and deceptive advertising for the federal “Cash for Clunkers” program.
South Carolina Attorney General Henry McMaster supports religious license plates featuring the words “I Believe” and images of a stained-glass window and a cross although Americans United for Separation of Church and State sued state officials last year after lawmakers passed a bill creating the plates deeming them unconstitutional.
Alaska Attorney General Dan Sullivan today unveiled a proposal to reform the state ethics act. His plan would create penalties for abuses of the ethics act, would allow the state to foot legal bills for exonerated public officials, and would extend greater confidentiality for complaints.
The Oregon State Attorney General John Kroger has banned the sale of electronic cigarettes until the Federal Drug Administration proves the safety of the product or until a court rules the FDA does not have the authority to regulate them. If the latter is determined, they still may not be sold in Oregon unless there is reliable scientific evidence to support the product’s claims of safety.
Attorney General Edmund G. Brown Jr. won a $1.2 million ruling against scam artists who billed nearly a million California business owners $150 each for deceptive and unnecessary corporate minutes services. The court ordered the defendants to pay restitution of $200,000 and imposed civil penalties of $986,000 after violating four statutes.
Sixteen companies that have developed or plan wind energy projects in New York have signed an ethics code, which levies fines for gift-giving to city officials and for other misconduct. Formed as a result of ongoing investigations by Attorney General Andrew Cuomo’s office into allegations that developers bribed local officials to push through wind power projects, the code prohibits companies from hiring municipal employees or their relatives and from providing compensation for municipal approval as well as other penalties.
Following a 2005 lawsuit filed against Baxter Healthcare Corporation based on allegations that the drug makers fraudulently published inflated Average Wholesale Prices, which Medicaid programs used to determine the reimbursement amounts for drugs prescribed to Medicaid patients, Illinois State Attorney General Lisa Madigan announced that her office has recovered $6.8 million for the State through a settlement agreement.
Attorney General Mike Cox today announced that 3,674 Michigan consumers will begin to be notified they are eligible for a share of $6.6 million in restitution from Countrywide Financial. The funds are part of a settlement the Attorney General negotiated as a result of questionable lending practices exercised by employees of Countrywide, including predatory lending.
Minnesota Attorney General Lori Swanson reached a sweeping legal settlement with Minnesota company the National Arbitration Forum which requires them to get out of the business of arbitrating credit card debts and other consumer collection disputes nationwide. The National Arbitration Forum allegedly violated state consumer fraud, deceptive trade practices and false advertising laws by hiding financial ties to collection agencies and credit card companies.
Attorney General Chris Koster today announced a multi-state settlement with DISH Network that will bring $325,000 to Missouri and restitution to consumers who were misled by the satellite company's sales practices. The national investigation found the satellite TV provider and its third-party retailers engaged in deceptive and unfair sales practices.
Attorney General Martha Coakley filed a lawsuit challenging the constitutionality of Section 3 of the federal Defense of Marriage Act (“DOMA”) which unfairly excludes more than 16,000 Massachusetts married same-sex couples and their families from critically important rights and protections based on marital status. The complaint alleges that DOMA violates the U.S. Constitution by interfering with the Commonwealth’s sovereign authority to define and regulate the marital status of its residents and it exceeds Congress’s authority under the Spending Clause.
After being courted by Democrats in Washington and amidst rumors that she was being groomed by her father, the longest running House Speaker of Illinois, Attorney General Lisa Madigan has stated that family considerations caused her to pass on a run for U.S. Senate or governor and run next year for a third term in her current job. She plans on continuing to serve as attorney general because “it’s absolutely vital to have an independent advocate in that office.”
California State Attorney General Edmund Brown has sued a foreclosure consultant and attorney after they conned 2,000 desperate homeowners into paying exorbitant fees for “phony lawsuits” to forestall foreclosure proceedings. Brown’s office is seeking $2 million in civil penalties, full restitution for victims, and a permanent injunction to keep the company and the defendants from offering foreclosure consultant services.
Thirty states have reached a tentative agreement with General Motors Corp. over concerns the troubled automaker's bankruptcy plan would trample state laws. As part of the agreement, General Motors has agreed to acknowledge that all dealers staying with the new GM will be protected by state franchise and dealer laws and honor its express warranties and comply with state lemon laws, among other things.
The Texas attorney general and BP have reached a partial settlement in a lawsuit against the oil company for what the state claims were repeated environmental violations at its Texas City refinery. Attorney General Greg Abbot began the suit on June 4th as a result of a “pattern of unnecessary and unlawful emissions” at the refinery between 2000 and 2007.
Following a 2005 agreement with DuPont after a lawsuit filed by the office of Rhode Island state Attorney General Patrick Lynch against former lead paint manufacturers, the state has undergone a project to clean up as many as 600 housing units contaminated with toxic lead paint by 2012. Funded by DuPont, this $6.7 million project targets homes and apartments in low-income neighborhoods.
Eleven Michigan gas stations have signed deals with the state to settle allegations made by state Attorney General Mike Cox that they gouged drivers by raising gas prices to $5 a gallon when Hurricane Ike made landfall near major oil facilities in Texas on Sept. 12, 2008.
Georgia Attorney General Troy King, together with 40 other State Attorneys General, announced a settlement with the TJX Companies, Inc. The settlement results from an intensive 2007 investigation by the coalition of Attorneys General into TJX’s data security policies and procedures after TJX announced that certain persons had obtained access to its computer systems, seizing cardholder data and other personally identifiable information.
The state Attorney General Mark J. Bennett wants to combine the lawsuits that four state employee unions filed against plans by Gov. Linda Lingle to implement three-day-a-month furloughs.
Accusing the ailing automaker of trying to skirt state laws, Ohio Attorney General Richard Cordray filed an objection Friday to General Motors' plan to restructure itself. He joins attorneys general from Nebrask and other states in protesting the way GM is handling its dealers, claiming that GM’s requirements “unquestionably violate Ohio law and are completely contrary to the purpose of having state franchise laws.”
Eight attorneys general sent a letter to Obama on Tuesday urging him to preserve states' ability to enforce consumer protection laws, make sure federal consumer protection laws are the responsibility of an agency that can handle the task and not allow the financial industry to regulate itself. The letter was signed by California's Jerry Brown, Massachusetts' Martha Coakley, Maryland's Doug Gansler, North Carolina's Roy Cooper, Ohio's Richard Cordray, Illinois' Lisa Madigan, Iowa's Tom Miller and Connecticut's Richard Blumenthal.
Attorney General Mike Cox and Treasurer Robert Kleine announced a $109 million national settlement with Ernst & Young resulting from audits it conducted that failed to expose massive fraud taking place when serving as HealthSouth Corporation's auditing firm. The class action case alleged accounting errors and irregularities against Ernst & Young, including overstating financial statements and failing to conduct audits that were in compliance to generally accepted auditing standards for HealthSouth.
Tennessee Attorney General Bob Cooper has agreed to a $1.3 million settlement from a pharmaceutical company to settle claims that the company violated the state’s False Claim Act. Kindred Healthcare, Inc. and its partner PharMerica had been under investigation for overcharging pharmaceuticals sold to a Tennessee-based healthcare provider.
Attorney General Jim Hood settled an antitrust suit with Microsoft Corp for $100 million on Thursday and said businesses, individuals, schools and local government were eligible for a share of the money. The state sued Microsoft in 2004 claiming the company engaged in anticompetitive conduct that caused customers to pay more for software than they would have if there had been competition.
New York Attorney General Andrew Cuomo subpoenaed 14 loan-modification companies and plans to sue another one as part of a probe of the “foreclosure rescue” industry. Spurred by homeowner complaints that the companies fail to deliver the services they promise, often leaving consumers further in debt, Cuomo has stated that these companies are capitalizing on the housing crisis and preying on desperate homeowners.
Texas Attorney General Greg Abbott filed a lawsuit on Thursday against BP Plc's (BP.L) U.S. subsidiary for violations of state pollution laws by the company's giant Texas City, Texas, refinery. Seeking court orders to force BP to comply with state laws along with unspecified civil penalties, the suit cites 46 releases of pollution at the refinery, including those associated with a March 23, 2005, explosion that killed 15 workers and injured 180 other people.
Attorney General announces price gouging settlement with Radford, Dublin gas stations (June 1, 2009)
Virginia Attorney General Bill Mims today announced a price gouging settlement with L. V. Stone, Incorporated d/b/a Bucko's Pantry, a gasoline retailer with stations in Radford and Dublin. After violating the Virginia Post-Disaster Anti-Price Gouging Act by charging unconscionable prices as Hurricane Ike approached the Gulf Coast, Bucko’s Pantry has agreed, in lieu of paying civil penalties, to set aside $400 for consumer restitution, $800 to the American Red Cross Disaster Relief fund and $2,800 to reimburse the Commonwealth for its costs, investigative expenses, and attorneys’ fees in this matter.
As part of Operation False Charity, nationwide crackdown on fraudulent charities, California Attorney General Jerry Brown has filed eight lawsuits against a dozen charities and their fundraisers, alleging they had used false claims to raise millions of dollars and then squandered the donations intended to help police, firefighters and veterans organizations. Seeking the involuntary dissolution of the eight charities, according to Brown’s statement, Brown intends for the suits to stop the deceptive practices and recoup funds raised under false pretenses
After reviewing more than 2,000 complaints received over the past three years by the state and the Better Business Bureau, Texas Attorney General Greg Abbot filed a law suit against Conn’s, a Beaumont-based electronics and appliance retailer, for violating the Texas Deceptive Trade Practices Act. Conn’s has allegedly failed to honor warranties, has deceptively exchanged refurbished products as new and has used aggressive sales practices to sell warranties to customers, facing penalties of up to $20,000 for each violation and a $250,000 penalty for each time the company as financially harmed consumers 65 and older.
AGs say they oppose Chrysler bankruptcy (May 28, 2009)
Attorneys general from Illinois, Ohio, Florida, Kentucky and West Virginia have filed objections in federal bankruptcy court to the proposed sale of Chrysler LLC’s assets to Italian automaker Fiat SpA. Said attorneys general have stated that the proposed sale could hurt their respective states and consumers.
Idaho Attorney General Lawrence Wasden has filed a lawsuit last month against Apply 2 Save Inc., a mortgage loan modification company, in Kootenai County, alleging violations of state consumer protection laws. Wasden’s office received 176 complaints from consumers in states such as Colorado, Nevada, Maryland and Texas who made advance payments of as much $1,500 to the company and received little or no services.
Massachusetts Attorney General Martha Coakley has filed a complaint in Suffolk Superior Court against the owner of Pocasset Mobile Home Park, LLC, alleging that the company and its owner, Charles W. Austin, has failed to comply with state law by failing to repair and upgrade the park’s deteriorating septic system. The complaint further alleges that Austin has violated Massachusetts consumer protection laws by, despite full knowledge of the deteriorated septic system, continuing to rent lots at the park and endangering the health, safety and well-being of the residents.
Under the terms of a consent decree, Pennsylvania-based Pure Weight Loss, Inc. has paid the Pennsylvania Attorney General Tom Corbett $500,000.00, which has been distributed to more than 2,300 consumers nationwide. The decree results from the company’s closing down of more than 400 weight loss centers across the country, leaving thousands of consumers without access to weight loss products and services that they had pre-purchased.
The Illinois State Attorney General Lisa Madrigan is filing a suit against YTB International and its subsidiaries, accusing the Web-based travel marketing company executives of unfairly profiting at the expense of recruits and others. Enforcing the state’s Consumer Fraud and Deceptive Practices Act, Madrigan’s office has accused the company of employing pyramid scheme practices.
After negotiation with a group of attorneys general, online classified website Craigslist agreed to remove its erotic services section. Criticism of Craigslist by law enforcement officials was amplified after a Boston murder in April that is believed to have occurred during a meeting initiated through this service.
Connecticut Attorney General Richard Blumenthal has filed suit against the Federal Aviation Administration over proposed new flight paths for large planes flying out of LaGuardia and Westchester County airports. Blumenthal, joined in his suit by nine Connecticut towns, has argued that the paths would increase air and noise pollution over heavily populated areas.
Massachussetts Attorney General Martha Coakley has settled with investment bank Goldman Sachs for over unfair loans, as part of an investigation of the roles large investment banks played in the mortgage crisis. This settlement will reduce monthly payments for over 700 homeowners in the state by up to 35 percent.
Maryland Attorney General Douglas Gansler has filed suit to order the U.S. Department of Commerce to reverse a decision allowing the construction of the AES Sparrows Point liquefied natural gas terminal and pipeline, which would adversely affect large areas of wetlands and coastlines. AES was permitted to build the terminal after appealing Maryland's original decision that the terminal was inconsistent with the state's Coastal Zone Management Act and the previous Commerce Secretary, Carlos Gutierrez, overrode the decision.
After reports by The Arizona Republic on potential mismanagement of funds by a network of food bank charities, state attorney general Terry Goddard has announced he will investigate how the charities use money for salaries and expenses. "The Republic's series this week about a network of charities raises important questions," Goddard said. "They include how some charitable dollars have been spent, the paper transfer of goods that lets more than one group take credit for the same donation, and whether donors have been accurately informed about the charities' operations."
New York Attorney General Andrew Cuomo and the U.S. Securities and Exchange Commission has charged Dallas-based Aldus Equity Partners and one of its founding principals, Saul Meyer for participation in a “pay-to-play” scandal. This is part of an ongoing criminal probe of kickbacks paid to invest its state pension fund money.
California Attorney General Jerry Brown accused subsidiaries of Wells Fargo & Co. of fraud in a lawsuit alleging the bank improperly marketed risky investments as “safe and liquid as cash” despite the February 2008 collapse of the $330 billion market for so-called auction-rate securities. While many banks have since agreed to buy back customers’ investments and pay millions in fines, San Francisco-based Wells Fargo has not done so and as a result, the lawsuit is seeking to have the bank buy back $1.5 billion invested by 2,400 Californians who can't fully access their accounts as well pay fines that could amount to hundreds of millions of dollars.
New York State Attorney General Andrew Cuomo filed a law suit against one of the largest servers of debt collection legal action notices, American Legal Process of Lynbrook, N.Y. The suit alleges that American Legal did not properly serve debtors with papers that have apprised them of legal action.
California state Attorney General, Jerry Brown has filed a suit against gas station chain TravelCenters of America to force the company to comply with California’s underground fuel storage laws. The suit comes after the Riverside Department of Environmental Health found long-standing violations that has put groundwater supplies at risk of contamination.
Shavar Jeffries, Counsel to New Jersey Attorney General Anne Milgram, says school-zone drug laws with mandatory sentences can be unfair. In this video clip (linked above), he urges students to correct such injustices through criminal justice careers.
New York Attorney General Andrew M. Cuomo has filed a lawsuit against J. Ezra Merkin, and the funds that he controls, for violating New York’s Martin Act. Merkin is alleged to have invested, without investors’ permission, more than $2.4 billion with the convicted Ponzi scheme operator, Bernard L. Madoff, in exchange for $470 million in management and incentive fees.
Attorney General Greg Abbott has charged Global Escapes, a Florida based company, with violation of the Texas Deceptive Trade Practices Act as well as other business and commerce laws. Abbot is seeking restitution for some 5,000 Texas consumers who were enticed by false gift giveaways and attended sales seminars in which Global Escapes allegedly used “high-pressure sales tactics to convince customers” to purchase their over-priced “proprietary software search engine technology.”
Illinois Attorney General Lisa Madigan introduced a new law, the Hospital Uninsured Patient Discount Act, which will cap hospital bills and offer significant discounts for uninsured patients in Illinois. In effect April 1, this law will make medical care more accessible and affordable—home, car and pensions cannot be used as assets to pay for medical bills.
Connecticut Attorney General Richard Blumenthal, with help from state lawmakers, has proposed legislation to establish a joint commission with the State of New York to help protect the environmental needs of the Long Island Sound. This joint commission between Connecticut and New York will “represent businesses, ordinary citizens, environmental groups” and other stakeholders.
Ohio Attorney General Richard Codray is suing the defunct gift certificate company CertifiChecks Inc. for allegedly failing to honor its gift certificates and, in effect, violating Ohio’s Consumer Sales Practices Act. After filing for Chapter 7 bankruptcy in February, Certifichecks Inc. left consumers with unredeemable gift certificates
Kansas Attorney General Steve Six received $4.5 million in tobacco settlement funds for the state of Kansas—the largest financial recovery in legal history. Secured by the Attorney General’s Tobacco Enforcement Unit, these funds will “go directly to the Kansas Endowment for Youth Fund and help offset potential budget cuts being considered by the Legislature.”
Illinois Attorney General Lisa Madigan is seeking $3.9 million in damages and civil penalties from K.K. Bio-Science Inc. for allegedly overbilling the state for work that was never done. The owner of the now defunct company, Anita Mahajan, is closely tied with former Illinois Governor Rod Blagojevich as her husband, Amrish Mahajan was a major fundraiser.
Connecticut Attorney General Richard Blumenthal has reached a settlement with USI Consulting Group (USICG) to pay $470,000 to Connecticut’s General Fund and to implement business reforms to address illegal compensation practices with insurers. These practices included hidden payments from The Hartford Insurance Company, The Principal Financial Services Group, Inc., and Mutual of Omaha Insurance Company in exchange for information and "last look" bidding opportunities for profitable pension plans.
When Massachusetts passed a 2006 law requiring all residents to have health insurance — or face a penalty — a new insurance market sprung up. However, health advocates and state officials are getting complaints about unscrupulous insurance merchants. This NPR audio piece, features an interview with Massachusetts Attorney General, Martha Coakley, who says that 3100 consumers called her office complaining of health insurance fraud. Coakley filed suit against two companies, hoping to send a message to others.
Massachusetts Attorney General Martha Coakley reached a settlement for over $238,000.00 with The Chubb Corporation resolving allegations about their improper compensation practices with brokerage firm William Gallagher Associates Insurance Brokers, Inc. (WGA). These practices included WGA’s directing of profitable business to The Chubb Corporation in exchange for loan forgiveness.
In an ongoing investigation into health-care reimbursement rates, New York state Attorney General Andrew Cuomo has served a five-day notice of intent to sue Excellus Health Plan. Excellus Health Plan is being sued for defrauding consumers and parties for out-of-network services.
The Texas State Attorney General’s office created a restitution program on Wednesday that will make nearly $7.5 million available to eligible mortgage customers of Countrywide Financial Corp who lost their homes to foreclosure. The program results from an ongoing investigation of Countrywide Financial Corp’s questionable lending practices.
The Connecticut Attorney General’s office is investigating the Association for Firefighters and Paramedics for possible fraudulent fundraising. While Attorney General Richard Blumenthal has said that the charity is registered in the state, he calls their activities “suspect.”
Benefit raffles held by Ronald McDonald House Charities of San Diego may not have been legally regulated, according to the California Department of Justice. Ronald McDonald House has stated that they will be filing the necessary paperwork.
Virginia Attorney General Bob McDonnell has announced he will resign his office later this month in order to focus on his gubernatorial campaign. McDonnell’s chief deputy, Bill Mims, will succeed him pending confirmation by the state legislature.
Modern Healthcare reports on efforts by attorneys general across the country, including Greg Abbott of Texas, Jerry Brown of California, Mike Cox of Michigan, Andrew Cuomo of New York, Lisa Madigan of Illinois, and Lori Swanson of Minnesota, to pursue healthcare goals and protect assets within the healthcare sector.
In anticipation of the closing of Brandeis University’s Rose Art Museum, the office of Massachusetts Attorney General Martha Coakley plans to review the terms of the sale of items in the museum’s collection, which could be worth up to $400 million. Trustees and supporters of the museum were not informed of the closing in advance.
Former Merrill Lynch CEO John Thain has been subpoenaed by New York Attorney General Andrew Cuomo, who is seeking testimony regarding billions of dollars in bonuses issued days before his company was bought out by Bank of America. Bank of America Chief Administrative Officer J. Steele Alphin has also been subpoenaed.
The office of the California attorney general is seeking a reversal of a 2006 ruling that banned public warnings from the state about risks related to mercury content in canned tuna.
California Attorney General Jerry Brown has appointed an unnamed state prosecutor to investigate the fatal shooting of an unarmed man by a transit police officer on January 1. Faced with widespread public outrage in reaction to the shooting, Brown has pledged to monitor the situation closely.
