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State AG News: Consumer Protection, Fraud, AI August 14-20, 2025

By Toni Michelle Jackson, Derick D. Dailey & Meredith Manuel on August 22, 2025
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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 August 14-20, 2025:

Illinois

  • Attorney General Raoul filed a lawsuit to prevent unlawful federal funding cuts that threaten Illinois’ state energy programs. The litigation asserts that the federal government’s proposed reductions would undermine vital clean energy initiatives, consumer protection efforts, and utility affordability across the state. The complaint asserts that these cuts violate statutory requirements and would hinder Illinois’ progress toward its energy and climate goals, particularly impacting vulnerable communities. The lawsuit seeks to block the federal action, preserve funding for energy programs, and ensure that federal agencies comply with legal obligations.

Massachusetts

  • Attorney General Campbell reached a $795,000 settlement with a property management company for failing to protect the personal information of thousands of Massachusetts residents. The company allegedly did not implement adequate data security measures, leading to unauthorized access and exposure of sensitive consumer information. The settlement requires the company to pay restitution, enhance its data protection protocols, and comply with state consumer privacy laws to prevent future breaches.

Minnesota

  • Attorney General Ellison announced a lawsuit against Monarch Investment and Management Group, a major residential property owner and manager, for alleged violations of Minnesota’s consumer protection laws. The complaint accuses Monarch of charging unlawful fees, failing to return security deposits, and engaging in deceptive practices that harmed tenants across the state. The lawsuit seeks restitution for affected renters, civil penalties, and injunctive relief to ensure Monarch complies with state laws regarding rental practices and tenant rights.

New Mexico

  • Attorney General Torrez secured a $350,000 settlement in a case involving Santa Fe Plaza Spa. The settlement resolves allegations that the spa engaged in deceptive business practices, including misrepresenting services and failing to provide promised treatments to consumers. Under the agreement, the spa must pay restitution to affected customers and implement changes to its business practices, ensuring greater transparency and compliance with state consumer protection laws going forward.

New York

  • Attorney General James filed a lawsuit against the company behind Zelle, alleging the platform enabled widespread consumer fraud. The complaint accuses the company of failing to implement adequate safeguards, allowing scammers to exploit users and causing significant financial harm to consumers. The lawsuit seeks restitution for victims, civil penalties, and request that Zelle’s operator adopt stronger fraud prevention measures and increase transparency for users, in order to comply with state consumer protection laws.

Pennsylvania

  • Attorney General Sunday reached a $130,000 settlement with a Northeast Pennsylvania vehicle dealership group for deceptive sales tactics, including inflating vehicle prices and misleading consumers about fees and financing terms. The settlement requires the dealership group to pay restitution to affected customers and implement changes to its business practices, ensuring compliance with Pennsylvania consumer protection laws and transparency in future transactions.

Texas

  • Attorney General Paxton launched an investigation into Meta and CharacterAI for allegedly engaging in deceptive AI practices. The investigation will examine whether these companies violated state consumer protection laws by targeting minors with unsafe or misleading artificial intelligence technologies. Potential remedies include civil penalties, injunctive relief, and requirements for greater transparency and safeguards to protect young users from deceptive AI content.

West Virginia

  • Attorney General Morrisey filed a lawsuit against Express Scripts, alleging the company played a central role as an architect of the opioid crisis. The complaint asserts that Express Scripts, as a pharmacy benefit manager, contributed to the widespread overprescribing and distribution of opioids through its business practices. The lawsuit seeks damages, civil penalties, and injunctive relief to hold Express Scripts accountable and prevent future harm related to opioid distribution in West Virginia.
Tags: AI
Photo of Toni Michelle Jackson Toni Michelle Jackson

Toni Michelle Jackson is a first-chair litigator whose extensive jury and bench trial experience is informed by over 15 years of government service. Clients rely on her to marshal the evidence presented during discovery and either win their case at summary judgment or…

Toni Michelle Jackson is a first-chair litigator whose extensive jury and bench trial experience is informed by over 15 years of government service. Clients rely on her to marshal the evidence presented during discovery and either win their case at summary judgment or try the case and win at trial. In particular, she leads class/collective actions, multidistrict litigations, and other complex litigation in federal and state courts. As chair of the State Attorneys General Practice Group, Toni provides advice and counsel to clients with State Attorneys General matters, including investigations, inquiries and litigation.

Read more about Toni Michelle JacksonEmail
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Photo of Derick D. Dailey Derick D. Dailey

Derick Dailey is a Counsel in Crowell’s State Attorney General, Litigation and Trial, and White Collar Investigations Practice Groups.

Read more about Derick D. DaileyEmail
  • Posted in:
    Government and Public Policy, Technology and AI
  • Blog:
    State AG Blog
  • Organization:
    Crowell & Moring LLP
  • Article: View Original Source

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