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State AG News: Data Privacy, Housing, Consumer Protection (January 29-February 4, 2026)

By Toni Michelle Jackson, Tiffany Aguiar & Meaghan Katz on February 5, 2026
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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 January 29-February 4, 2026:

Multistate

  • A bipartisan coalition of 23 state attorneys general submitted a comment letter opposing two proposed rules by the Office of the Comptroller of the Currency that would preempt state laws requiring minimum interest payments on mortgage-escrow accounts by national banks. The letter asserts that the proposed rules are an improper attempt to circumvent congressional limits on bank preemption under the Dodd-Frank Wall Street Reform and Consumer Protection Act, and would interfere with the states’ constitutional authority to protect consumers.
  • A multistate coalition of 18 state attorneys general submitted a comment letter to the U.S. Department of Health and Human Services and the Centers for Medicare and Medicaid Services (“CMS”) opposing an interim final rule eliminating staffing standards for long-term health care facilities. The letter asserts that the rule will endanger seniors, and urges CMS to enact a replacement regulation.
  • A multistate coalition of 19 attorneys general won summary judgment in the U.S. District Court for the Western District of Washington against the U.S. Department of Transportation and the Federal Highway Administration for terminating congressionally approved electric vehicle infrastructure funding. The District Court held that the funding termination violated the Administrative Procedure Act, and accordingly declined to reach the attorneys’ general constitutional claims. The District Court vacated the letter terminating funding, ordered remedial injunctive relief, and issued a declaration that the termination was arbitrary and capricious, and exceeded statutory authority.
  • A multistate coalition of 17 attorneys general amended a complaint challenging President Trump’s “National Energy Emergency” executive order. The amended complaint alleges that the U.S. Department of Interior illegally bypassed the National Environmental Protection Act, the Endangered Species Act, the Administrative Procedures Act, and the department’s own regulations by giving fossil fuel development preferential treatment over other energy sources. The complaint seeks vacatur, attorneys’ fees and costs, and declaratory and injunctive relief.

California

  • Attorney General Rob Bonta sued Rady Children’s Health (“Rady”) for allegedly violating the binding conditions of a merger agreement by terminating its gender-affirming care program for minors. The complaint asserts that Rady failed to obtain the Attorney General’s approval before eliminating gender-affirming services, despite expressly agreeing to do so as a condition of approval of its merger with Children’s Hospital of Orange County, thereby violating California’s Nonprofit Public Benefit Corporations Laws and Unfair Competition Law. The lawsuit seeks injunctive relief, attorneys’ fees and costs, and a civil penalty of up to $2,500 for each violation of Business and Professions Code section 17200.

Massachusetts

  • Attorney General Andrea Joy Campbell secured a $515,000 settlement with Comstar, LLC, an ambulance billing vendor, for allegedly failing to protect sensitive patient information during a data breach. The settlement requires Comstar to comply with Massachusetts’ Data Breach Notification Law, as well as with the Consumer Protection Act, the Personal Information Protection Act, and the Health Insurance Portability and Accountability Act. Comstar must also obtain an information security assessment from an independent third-party assessor every three years, and implement a variety of additional security measures.

New York

  • Attorney General Letitia James filed a lawsuit against Bourne & Kenney Redevelopment Company, LLC and All County Property Management, Inc. for allegedly extensive violations of municipal and state property codes. The verified petition asserts that the companies repeatedly and persistently violated the Code of Ordinances of the City of Newburgh, the Property Maintenance Code of the State of New York, and the New York Real Property Law § 235-b by failing to provide heat and hot water for months, and by refusing to address approximately 160 other violations related to mold, infestations, and infrastructural repairs. The lawsuit seeks injunctive relief, a $300,000 performance bond, restitution to tenants, and costs and disbursements.

Texas

  • Attorney General Ken Paxton sent Civil Investigative Demands to three unnamed businesses in North Texas for alleged abuse of the H-1B visa program. The businesses are suspected of creating sham websites advertising nonexistent products and services in order to fraudulently sponsor H-1B visas.
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.

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Photo of Tiffany Aguiar Tiffany Aguiar
Read more about Tiffany AguiarEmail
Photo of Meaghan Katz Meaghan Katz
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  • Posted in:
    Administrative and Regulatory, Privacy and Cybersecurity
  • Blog:
    State AG Blog
  • Organization:
    Crowell & Moring LLP
  • Article: View Original Source

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