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 January 15-21, 2026:
Multistate
- A multistate coalition of 24 state Attorneys General filed an amicus brief urging the D.C. Circuit Court to permit EPA to rescind up to $20 billion in grants issued under the Greenhouse Gas Reduction Fund. Amici argue that the Biden-era program was “unlawfully structured, riddled with waste and conflicts of interest, and intentionally designed to evade oversight.”
- A multistate coalition of 18 state Attorneys General submitted a comment letter opposing a proposed rule issued by the U.S. Department of Health and Human Services that would amend the definition of “disability” under Section 504 of the Rehabilitation Act of 1973 to exclude gender dysphoria. The AGs argue that the proposed rule “provides insufficient time for the public to submit comments, contradicts extensive legal precedent, and harms states’ abilities to protect their communities from discrimination.”
- A multistate coalition of 23 state Attorneys General submitted a comment letter supporting a proposed rule issued by the U.S. Department of Health and Human Services that would amend the definition of “disability” under Section 504 of the Rehabilitation Act of 1973 to exclude gender dysphoria. These AGs argue that the proposed rule is consistent with the statutory exception for “gender identity disorders not resulting from physical impairments.”
Arizona
- Arizona Attorney General Mayes announced a settlement resolving allegations that SimonMed Imaging MSO, LLC (“SimonMed”), a medical imaging service provider, violated the state’s Consumer Fraud Act. Specifically, SimonMed (1) failed to issue refunds for overpayments as promised within a reasonable time period, with some consumers not receiving a refund for over a year following service, and (2) continued to require consumers to pay up front, during a period it knew any overpayments could result in unreasonably delayed refunds. SimonMed committed to issuing refunds within an average of 60 days, contacting consumers proactively about delays, and paying $50,000 in civil penalties, $20,000 in restitution, and $20,000 in costs and fees.
California
- California Attorney General Bonta announced an investigation into X (formerly known as Twitter) and xAI arising out of “the proliferation of nonconsensual sexually explicit material produce using Grok, an AI model developed by xAI.” AG Bonta has received reports of Grok users “taking ordinary images of women and children available on the internet and using Grok to depict these people in suggestive and sexually explicit scenarios and ‘undress’ them, all without the subjects’ knowledge or consent.” This marks as departure from normal practice for AG Bonta, who generally does not announce investigations at their outset.
- California Attorney General Bonta announced settlements totaling $3.35 million with three plastic bag producers: Novolex Holdings, LLC, Inteplast Group Corporation, and Mettler Packaging LLC, resolving allegations that these companies violated the California Environmental Marketing Claims Act, False Advertising Law, and Unfair Competition Law by marketing and selling non-recyclable plastic bags as “recyclable.”
Maryland
- Maryland Attorney General Brown announced a settlement to resolve allegations that KVS Title, LLC and a series of joint venture companies unlawfully paid fees to real-estate agents and brokers in exchange for the referral of consumers who purchased title insurance, in violation of the federal Real Estate Settlement Procedures Act of 1974, the Maryland Real Estate Settlements Act, and the Maryland Consumer Protection Act.
New Jersey
- New Jersey Attorney General Platkin announced that Apple agreed to pay $150,000 in civil penalties and to change its business practices to resolve allegations that Apple violated the state’s Merchandise Pricing Statute (N.J.S.A. 56:8-2.5). The New Jersey Division of Consumer Affairs reinspected 11 Apple stores subject to a 2017 consent order to install continuously available pricing information for the devices on display and found numerous stores and items out of compliance with the order.
- New Jersey Attorney General Platkin announced a settlement with Skims Body, Inc., resolving allegations that the company violated New Jersey’s Consumer Fraud Act by collecting sales tax on tax-exempt clothing sold to New Jersey consumers. Skims has remitted the improperly collected sales tax to the New Jersey Division of Taxation, taken steps to identify and reimburse impacted consumers, and agreed to pay a $200,000 civil penalty and implement reforms to prevent future violations of the New Jersey Consumer Fraud Act.
Texas
- Texas Attorney General Paxton announced a settlement with Cal-Maine Foods, Inc. (“Cal-Maine”) resolving allegations that the company raised the cost of eggs by approximately 300% in April 2020, in violation of the Texas Deceptive Trade Practices Act. Cal-Maine agreed to donate 180,000 dozen large eggs to Texas food banks by May 15, 2026, and committed to maintaining prices for eggs that no longer violate the Texas Deceptive Trade Practices Act.