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. Below are the updates from July 10-16, 2025:
Multistate
- A multistate coalition of 15 attorneys general announced that it is withdrawing its motion for a preliminary injunction in New Jersey v. Bondi, a lawsuit to prevent the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) from distributing previously seized Forced Reset Triggers (“FRTs”) back into the community. FRTs are used to turn semi-automatic firearms into fully automatic machineguns and were previously illegal under federal law. Thus, ATF previously seized approximately 12,000 FRTs after extensive retrieval operations. However, ATF reversed course. According to the coalition’s complaint, ATF has dropped pending enforcement actions against individuals who allegedly possessed FRTs and agreed to return seized FRTs back to its previous owners. The coalition stated that it was withdrawing its motion for a preliminary injunction after the Government agreed not to return FRTs to the coalition states.
- A multistate coalition of 23 Attorneys General and the governors of Pennsylvania and Kentucky sued the Trump Administration over its decision to freeze $6.8 billion in funding for programs administered by the U.S. Department of Education. Pursuant to federal statutory and regulatory requirements, the Department of Education makes about 25% of funds available to the states on July 1 annually. The freezing of these funds was disclosed in a three-sentence email to plaintiff states on June 30 announcing that the funds are pending a “review,” in part for consistency with the “President’s priorities.” Plaintiff states have alleged that the freeze violates federal statutes governing the federal budgeting process such as the Anti-deficiency Act and Impoundment Control act as well as the separation of powers doctrine of the Presentment clause.
- A multistate coalition of 22 attorneys general submitted an amicus brief in Rhode Island Coalition Against Domestic Violence v. Bondi to support plaintiff’s challenge to conditions placed by the U.S. Department of Justice (“DOJ”) on Violence Against Women Act (“VAWA”) grants. VAWA grants provide shelter, counseling, legal aid, and other supports to victims of domestic violence. The DOJ recently added new rules to grants by telling organizations that they cannot use funds to “promote gender identity” or “DEI programs.” This has created a confusing landscape as these organizations try to square the new rules with existing rules that organizations must serve all victims and follow anti-discrimination laws. In the amicus brief, the attorneys general argued that preliminary injunctive relief is in the public interest because the funds improve public safety across the United States.
California
- Attorney General Bonta announced the arraignment of two defendants in a complex fraud scheme where two defendants allegedly defrauded victims of over $1 million in investments for a pizza franchising company. The defendants were charged with 11 counts of Franchise Fraud in violation of the California Corporations Code, 9 counts of Security Fraud, 1 count of Fraudulent Securities Scheme, two counts of Grand Theft, and a “special allegation” of aggravated white collar crimes with losses over $500,000. Between 2020 and 2023, the defendants allegedly solicited money from investors who believed that they were either purchasing public stock options or franchises of a pizza restaurant chain. After receiving funds from the victims, defendants allegedly began closing off and ultimately stopping all communications with victims. Many of the victims had little to no business investment experience and some were over the age of 65.
- Attorney General Bonta announced that the U.S. District Court for the Central District of California granted California a temporary restraining order blocking U.S. Immigration and Customs Enforcement (“ICE”) and Customs and Border Protection (CBP) from engaging in allegedly unconstitutional stops of Los Angeles residents during immigration sweeps. AG Bonta alleged that the stops are based on racial profiling, rather than evidence of wrongdoing.
Idaho
- The Idaho Supreme Court ruled that Attorney General Labrador had authority to investigate alleged misuse of government grants issues to charitable organizations under the Idaho Charitable Assets Protection Act (“ICAPA”), the Idaho Charitable Solicitation Act (“ICSA”), and the Idaho Consumer Protection Act. The ruling reversed the court below which had blocked AG Labrador from obtaining information from 19 grant recipients. The case arose from reports that certain grant funds for studying the impacts of COVID-19 on school aged children were misused. At issue was whether grants fit within the definition of “charitable donations” under ICAPA, ICSA, and the Consumer Protection Act. Because the grants fit within the definition, the Court determined that the AG had authority to demand information from anyone he has reason to believe possess relevant knowledge of suspected violations.
Massachusetts
- Attorney General Campbell announced a $2.5 million settlement with Delaware-based student loan company Earnest Operations LLC (“Earnest”) over alleged violations of consumer protection and fair lending laws. Earnest used artificial intelligence (“AI”) models to make lending decisions including determining an applicants’ eligibility and their loan terms and pricing. The AI model allegedly led to a disparate impact in approval rates and loan terms, with Black and Hispanic applicants more likely to be penalized than White applicants. AG Campbell further alleged unfair and deceptive conduct related to Earnest’s human-based assessments, automatic denial of applications based on immigration status, sending inaccurate adverse action notices to applicants, and failing to implement policies and procedures to mitigate fair lending risks. As a result, Earnest will pay $2.5 million, implement changes to its business practices, and regularly report to the AG’s Office on its compliance.
Missouri
- Attorney General Bailey announced that his office launched an investigation and related lawsuits against Glass Lewis and Institutional Shareholder Services (ISS) – foreign-owned proxy advisory firms. The firms specialize in providing voting recommendations to institutional investors on how to vote their shares at corporate shareholder meetings. Glass Lewis and ISS control more than 97% of the U.S. proxy advisory market, which AG Bailey states gives the firms significant influence over American corporate governance. The firms have allegedly promoted progressive environmental, social, and governance (“ESG”) and diversity, equity, and inclusion (“DEI”) agendas. The AG alleges that these acts violate Missouri’s Merchandising Practices Act.
New Jersey
- Attorney General Platkin announced administrative actions against nine out-of-state retailers for allegedly shipping alcohol to New Jersey consumers without a license. Seven of the retailers resolved the allegations by agreeing to stop selling into the state without a license and paying a $2,000 penalty. The two remaining retailers were issued Notices of Violation seeking penalties of $4,000 that are still unresolved. These actions were the result of an investigation by the Attorney General and the Division of Consumer Protection’s investigation into out-of-state shipments of alcohol into the state. As part of the investigation, an undercover investigator purchased alcoholic beverages from out-of-state businesses that did not have New Jersey’s licenses for the sale.