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 insight. Here are this week’s updates.
Multistate
- A coalition of 11 state attorneys general submitted a comment letter in response to the Federal Trade Commission and U.S. Departments of Justice and Health and Human Services’ request for information regarding consolidation in health care by private equity. In their letter, the attorneys general lay out possible enforcement and regulatory actions to address the detrimental effects of private equity health care transactions that they contend have harmed patients and undermined the financial viability of health care providers.
- A bipartisan coalition of 42 state attorneys general have reached a $700 million nationwide settlement regarding allegations associated with the marketing of Johnson & Johnson’s baby powder and baby powder products containing talc. The settlement follows a lawsuit alleging that the company deceptively promoted and misled consumers in advertisements related to the safety and purity of some of its talc powder products. Johnson & Johnson has agreed to stop the U.S. manufacture and sale of its baby powder and body powder products containing talc.
- A bipartisan coalition of 33 state attorneys general have filed an amicus brief in the Supreme Court case Pharmaceutical Care Management Association v. Mulready, arguing that pharmacy benefit managers (PBMs), intermediaries in the prescription pharmaceutical industry between prescription-drug plans, pharmacies, and drug manufacturers, have imposed self-serving protections that reduce competition in the marketplace, limit prescription medication access, and impose confidentiality requirements that limit transparency. The case arose when Pharmaceutical Care Management Association (PCMA) sued Oklahoma officials, alleging that federal laws (ERISA and Medicare Part D) preempt Oklahoma’s laws. The district court rejected PCMA’s claims, but last summer the Tenth Circuit reversed, holding that ERISA and Medicare preempt Oklahoma’s laws.
California
- Attorney General Bonta announced a settlement against two individual landlords and their property management company, Bosanek Enterpises (doing business as Heritage Property Management Services), to resolve allegations that they violated California’s Tenant Protection Act (TPA) by unlawfully evicting tenants in Marysville. The settlement follows an investigation revealing that the landlord issued pretextual eviction notices. Under the settlement, the companies will pay $36,500 in restitution, $4,000 in penalties, and be subject to other injunctive terms prohibiting future misconduct.
Massachusetts
- Attorney General Campbell announced a $4 million settlement with Next Step Healthcare, LLC (“Next Step”), a Woburn-based long-term care management company that operates sixteen nursing homes throughout the state of Massachusetts. The settlement resolves allegations that Next Step failed to properly staff the nursing homes it owned and operated, resulting in resident harm and neglect. The settlement follows an investigation by the Attorney General’s office in response to reports of substandard care, regulatory violations, and referrals received from the Department of Public Health. In addition to monetary penalties, Next Step has agreed to hire an independent compliance monitor whose role will be to oversee the improvement of staffing and facility compliance with state requirements.