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 21 attorneys general filed an amicus brief in the case of Pharmaceutical Research and Manufacturers of America v. Andrew Stolfi, which is pending before the Ninth Circuit Court of Appeals. The case challenges the constitutionality of an Oregon bill that would require pharmaceutical manufacturers to report specified information about drugs when there is an increase in the drug’s Wholesale Acquisition Cost. The amicus brief supports the law, and others like it, as a means to protect access to affordable prescription drugs.
Oklahoma
- Oklahoma Attorney General Gentner Drummond filed an amicus brief in the case of Lejilex, et al., v. Securities and Exchange Commission, et al., a case pertaining to the US Securities and Exchange commission’s (SEC) authority to regulate the cryptocurrency industry without a clear statutory mandate. The amicus brief argues that the SEC’s regulation of cryptocurrencies bypasses state consumer-protection laws without accountability to ensure the SEC’s actions are proper and necessary. The brief also states that the SEC’s policing will hinder growth and innovation in the industry.
Wisconsin
- Wisconsin Attorney General Josh Kaul announced a settlement with Wisconsin Whey Protein Inc., resolving allegations that the company violated state wastewater and stormwater laws by discharging treated wastewater to an unnamed tributary that had biological oxygen demand, total suspended solids, ammonia nitrogen, dissolved oxygen, pH, and temperature beyond the levels allowed by its wastewater permit. The state also alleged that the company did not properly operate and maintain its wastewater treatment facility and did not timely obtain stormwater permit coverage required for construction and operations. The settlement requires the company to pay a total of $350,000 in forfeitures, surcharges, court costs, and attorney fees. The company is also required to install and utilize a chiller that will cool the wastewater before discharge.
Connecticut
- Connecticut Attorney General William Tong announced a lawsuit against SunRun Inc., SunRun Installation Services, Bright Planet Solar, Inc., Elevate Solar Solutions LLC and salespeople Dakota Grumet and Sierra Howes. The complaint alleges that the defendants violated the state’s Unfair Trade Practices Act by locking consumers into long-term contracts without full and informed consent, including impersonating consumers, and installing non-functional systems. The Office of the Attorney General is seeking restitution, civil penalties, disgorgement, and attorneys’ fees.
Arizona
- Arizona Attorney General Kris Mayes announced a lawsuit against Cummins, Inc. and FCA US, LLC alleging violations of the Arizona Consumer Fraud Act. According to the complaint, the companies defrauded Arizonans by falsely advertising and selling thousands of vehicles as environmentally friendly or low-emission, without disclosing to consumers that the vehicles had illegal emissions defeat devices. The Office of the Attorney General is seeking injunctive relief, restitution, disgorgement, civil penalties, and attorneys’ fees.
Vermont
- Vermont Attorney General Charity Clark announced a lawsuit against pharmacy benefit managers Evernorth and CVS as well as nearly two dozen affiliated entities for allegedly violating the state’s consumer protection act. AG Clark alleges that the defendants manipulated the marketplace and reduced access to certain prescription drugs, including lower-cost drugs. The Office of the Attorney General is seeking injunctive relief, restitution, disgorgement, civil penalties, and investigative and litigation costs.
New York
- New York Attorney General Letitia James issued a warning to businesses against price gouging of essential items in the wake of severe tornado weather throughout the state. New York law prohibits businesses from taking advantage of consumers by selling goods or services that are vital to health, safety, or welfare for an unconscionably excessive price during emergencies. The price gouging statute covers New York state vendors, retailers, and suppliers.
Minnesota
- Minnesota Attorney General Keith Ellison announced four settlements against Kris Sipe and Trevor Sumner, the founders of Sun Badger Solar, and EnergyBillCruncher and Prospect Bacon, lead generators that advertised on Facebook and elsewhere. The settlement resolves allegations that Sun Badger Solar failed to install promised solar panels and forced consumers to renegotiate interest rates on their solar loans due to delays by the company itself. The lead generators allegedly published advertisements that contained factually-incorrect statements intended to entice consumers into providing their information to solar installers and, eventually, buying a residential solar system. AG Ellison obtained injunctive relief and stayed civil penalties that defendants will be required to pay if they violate any of the terms in the settlement.