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 insight. Here are this week’s updates.
Multistate
- (DEI, based on SFFA) On June 20, a coalition of 19 state attorneys general issued a letter to the American Bar Association (ABA), Fortune 100 company CEOs, and other leaders defending and supporting diversity, equity, and inclusion efforts and programs. The letter was sent in response to one sent to the ABA by another group of attorneys general on June 3, asserting that the ABA’s standard on diversity and inclusion violates the U.S. Supreme Court’s ruling in Students for Fair Admissions Inc. v. President and Fellows of Harvard College (SFFA). The June 20 letter noted that diversity efforts correlate with strong business performance and enjoy support from a majority of consumers.
- A coalition of 22 attorneys general filed an amicus brief supporting a Federal Trade Commission (FTC) order that bars Intuit, the maker of TurboTax, from deceptively advertising free tax preparation software when its services were allegedly not actually free for many consumers. In 2022, a bipartisan coalition of 50 states secured a $141 million settlement from Intuit that resolved state investigations into claims that Intuit deceptively marketed and advertised TurboTax. In 2023, following a similar investigation, the FTC issued a cease-and-desist order requiring Intuit to stop advertising products as free unless they are free to all consumers. Intuit now seeks to overturn the FTC’s order.
California
- California Attorney General Bonta announced a settlement with Adventist Health Hanford (Adventist) resolving violations of the Unfair Competition Law, the Confidentiality of Medical Information Act (CMIA), and the Health Insurance Portability and Accountability Act’s Privacy Rule (HIPAA). The settlement includes $10,000 in civil penalties and injunctive terms that require Adventist to safeguard patients’ health data from being wrongfully provided and exploited. According to the settlement, two pregnant women went to Adventist seeking medical assistance and suffered stillbirths at the hospital. Adventist personnel provided unauthorized medical details to law enforcement that included protected health information (PHI). Following the unlawful disclosures, both patients were prosecuted for murder and incarcerated based on their alleged drug use during their pregnancies.
- California Attorney General Bonta announced his office sent cease and desist letters to Cali Choice and LivingHelp Center for suspected failure to comply with AB 1720. This law requires ultrasound technology and similar devices to be used only in licensed facilities or used by licensed providers.
Connecticut
- Connecticut Attorney General Tong announced a petition for rate decreases for both Connecticut Natural Gas (CNG) and Southern Connecticut Gas (SCG) customers following millions of dollars in alleged over-earnings by CNG. In 2023, earnings reports for CNG showed $8 million in over-collections from Connecticut families and businesses. While half of the over-earning was returned to ratepayers to offset winter heating bills, approximately $4 million was distributed to shareholders. If adopted, Attorney General Tong’s recommended decreases would reduce rates for SCG customers by approximately $2-4 per month, and CNG customers by approximately $9-11 per month.
Florida
- Florida Attorney General Moody announced an 18-year prison sentence for a pool company owner who defrauded nearly 100 Florida homeowners. Ricardo Villarroel Duerto, owner of Villa Pavers and Pools, along with salespersons and a licensed general contractor, was convicted of racketeering and conspiracy to commit racketeering, having defrauded homeowners in excess of $1 million.
Michigan
- Michigan Attorney General Nessel announced a compliance agreement with EcoShield Pest Solutions Detroit, LLC (EcoShield) to resolve allegations that EcoShield violated the Michigan Home Solicitation Sales Act (HSSA) and the Michigan Consumer Protection Act (MCPA). The terms of the agreement require EcoShield to discontinue utilizing its unlawful contracts and to instead use revised contract language that complies with the HSSA and MCPA.
Missouri
- (DEI, suit based on SFFA) Missouri Attorney General Bailey announced a lawsuit against IBM for violating the Missouri Human Rights Act. The suit alleges that IBM not only actively subjects job applicants to unlawful racial and gender quotas, but also bases current employees’ pay and employment statuses on whether they participate in the allegedly discriminatory practices.
Minnesota
- Minnesota Attorney General Ellison announced criminal charges against five individuals for Medicaid fraud. The individuals allegedly defrauded the Minnesota Medicaid program out of more than $10 million. Allegations include false documentation, overbilling, billing for services not provided, kickbacks, and diversion of funds for personal uses, among others.
New York
- New York Attorney General James announced her support for two newly enacted pieces of legislation meant to enhance child safety online. The Stop Addictive Feeds Exploitation (SAFE) For Kids Act, will require social media companies to restrict the use of algorithmic feeds on their platforms for users under 18. The New York Child Data Protection Act will prohibit websites from collecting, using, sharing, or selling personal data of anyone under the age of 18, unless they receive informed consent or unless doing so is strictly necessary for the purpose of the website.
Rhode Island
- Rhode Island Attorney General Neronha announced conditional approval under the Rhode Island Hospital Conversions Act for a transaction that would allow a change in ownership of a health care system that includes two local safety-net hospitals, Roger Williams Medical Center and Our Lady of Fatima Hospital, from Prospect Medical Holdings to The Centurion Foundation. These conditions require proper funding, management, planning, and community input and benefit, as non-negotiable stipulations for the approval of the sale.