Multistate Attorneys General Update
May 2019
In May 2019, coalitions of AGs:
- Filed three new multistate lawsuits against the federal government;
- Filed ten multistate amicus briefs either in the U.S. Supreme Court or lower courts;
- Submitted fourteen multistate letters or comments to Congress or federal agencies concerning policy or regulations;
- Completed two multistate settlements with corporations.
These multistate actions addressed several policy issues, including corporate regulation, health care, legal services, gun rights, energy efficiency, the Clean Water Act, and more. Perhaps the most impactful single development last month was the antitrust lawsuit joined by 44 AGs against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers.
The ongoing opioid litigation also continued to expand, as AGs across the country filed several new complaints against Purdue Pharma and its owners, the Sackler family. This latter legal strategy — piercing the corporate veil to pursue litigation against the Sacklers directly — has spread rapidly among AG plaintiffs. New actions last month against Purdue and the Sacklers included IA, IN, KS, MD, MN, NJ, PA, OR, VT, WV, and WI. Purdue had a rare victory in North Dakota when a state judge granted summary judgment to the company — the first in the current wave of AG-led opioid lawsuits to be dismissed in its entirety. Meanwhile, Oklahoma’s litigation against Janssen Pharmaceuticals was the first AG-led opioid lawsuit to reach trial, which could have reverberations across the entire field of opioid litigation.
Photo credits: Frankie Grazian, Connecticut Public Radio
Other interesting developments included the first AG lawsuit against e-cigarette maker JUUL, several additional AG settlements by the Washington AG prohibiting no-poach clauses in worker contracts nationwide, and the Arizona AG’s continuing efforts to challenge allegedly unfair class-action settlements. Several state legislatures provided additional powers to their AGs over the past month, and one effort to strip the AG of powers was vetoed by the governor.
The details of these multistate activities and significant single-state developments are noted below and in the respective databases under the “Multistate Activities Data” link above.
[5/6, New York v. U.S. Department of the Treasury, 1:19-cv-04024, S.D.N.Y.] Two Democratic AGs, led by New York’s Tish James, sued the IRS for failing to respond as required by law to FOIA records requests. The requests concern the elimination of established donor disclosure requirements for non-501(c)(3) tax-exempt groups. The revised reporting standard, released in July 2018 as Revenue Procedure 2018-38, permits non-(c)(3) organizations to withhold the names and addresses of their substantial contributors from their Form 990 or Form 990-EZ federal information return. This suit asks the court to compel the Treasury Department and IRS to respond as required by law to requests for information regarding agency actions that directly impact the AGs’ ability to effectively regulate affected organizations operating in New York and New Jersey.
[5/13, California v. Azar, 4:19-cv-02552, N.D. Cal.] Five Democratic AGs, led by California’s Xavier Beccera, filed a lawsuit opposing the Trump Administration’s final rule that the AGs claim undermines more than half a million workers in California’s In-Home Supportive Services (IHSS) Medicaid program, and several hundred thousand more workers nationwide. According to the AGs, the new federal rule creates barriers for states to deduct employee benefits and union dues from workers’ paychecks. By doing so, the AGs state, it makes it harder for workers to stand up together for their workplace rights and to provide quality home and community-based care to those in need. It puts at risk the more than 594,000 seniors and people with disabilities who receive assistance from the IHSS program.
[5/21, New York v. HHS, 1:19-cv-04676, S.D.N.Y.] 20 Democratic AGs, the cities of New York and Chicago, and the county of Cook County, IL, led by New York’s Tish James, filed a lawsuit over a new rule which would allow businesses and individuals to refuse to care for patients on the basis of their “religious beliefs or moral convictions.” The federal lawsuit seeks to stop the final rule from going into effect.
Significant Developments in Existing Multistate Lawsuits
[5/1, 5/20 Texas v. United States, 19-10011, 5th Cir.] The 18-AG plaintiff coalition filed a brief urging the U.S. Court of Appeals for the 5th Circuit to declare the Affordable Care Act unconstitutional. The 21 AG defendants, defending the individual mandate provisions of the Affordable Care Act, filed a reply brief.
[5/2, 5/24, 5/29, California v. Trump, 4:19-cv-00872, N.D. Cal.] The 20-AG coalition filed a reply brief in support of a preliminary injunction against President Trump’s allegedly illegal diversion of funding for a border wall. On 5/24, the court granted a preliminary injunction in part. On 5/29, the coalition filed a new motion for preliminary injunction, this time specifically concerning the construction of a border wall in El Centro, California.
[5/3, Georgia v. Wheeler, 2:15-cv-00079, S.D. Ga.] The court granted Wisconsin AG Josh Kaul’s request to withdraw from the challenge to the Waters of the United States rule, which was initiated under Kaul’s Republican predecessor.
[5/6, California v. EPA, 4:18-cv-03237, N.D. Cal.] The court granted partial summary judgment to the 8-AG coalition that has challenged the EPA’s allegedly illegal failure to implement and enforce a landfill methane regulation.
[5/28, Texas v. EPA, 3:15-cv-00162, S.D. Tex.] The court granted summary judgment to the three plaintiff states in this challenge to the Waters of the United States rule. The ruling sends the rule back to the Trump administration to proceed with repealing and replacing the WOTUS rule.
[5/29, California v. Barr, 18-17311, 9th Cir.] 16 AGs, led by New York’s Tish James, filed an amicus brief supporting California’s challenge to the US DOJ’s requirement to end sanctuary immigration policies in order to receive federal law assistance grants.
[5/10, Lawsuit, Teva Pharmaceuticals] A bipartisan group of 44 AGs, led by Connecticut’s William Tong, filed an antitrust lawsuit against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers, alleging a broad conspiracy to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade for more than 100 different generic drugs. The federal lawsuit also names 15 senior executive defendants at the heart of the conspiracy who were allegedly responsible for sales, marketing, pricing, and operations. The drugs at issue account for billions of dollars of sales in the United States, and the alleged schemes increased prices affecting the health insurance market, taxpayer-funded healthcare programs like Medicare and Medicaid, and individuals who paid artificially inflated prices for their prescription drugs.
[5/16, Lawsuit, Purdue Pharma] A bipartisan group of five AGs – representing Iowa, Kansas, Maryland, West Virginia, Wisconsin – sued Purdue Pharma and its former president and board chairman, Richard Sackler, alleging that the drug company engaged in unfair, deceptive and unlawful practices in the marketing of OxyContin, helping fuel the nation’s opioid crisis. The lawsuit alleges that Purdue, and its related companies repeatedly made false and deceptive claims that OxyContin was safe and suitable for a wide range of pain patients. Specifically, the lawsuit alleges that Purdue claimed that OxyContin posed a low risk of addiction; symptoms of addiction were in fact only “pseudoaddiction” indicating the need for more opioids; long-term opioid use improved patients’ quality of life and function; and that opioids were suitable for vulnerable groups, such as elderly patients and veterans.
[5/23, Settlement, Medical Informatics Engineering] A bipartisan group of 16 AGs announced a settlement in the first-ever multistate lawsuit filed in a federal court involving a Health Insurance Portability and Accountability Act data breach. The agreement comes following a lawsuit filed in December 2018 in federal court in Indiana against Medical Informatics Engineering, Inc., a web-based electronic health records company Under the terms of the consent judgment, MIE agreed to implement and maintain: (1) An information security program and a Security Incident and Event Monitoring solution to detect and respond to malicious attacks; (2) Data loss prevention technology to detect and prevent unauthorized data exfiltration; (3) Password policies and procedures requiring the use of strong, complex passwords; (4) Multi-factor authentication procedures when remotely accessing its systems that store or permit access to ePHI; and (5) Controls on the creation of accounts with access to ePHI. As part of the agreement, MIE will also pay nearly one million dollars to the states that filed the federal lawsuit.
Supreme Court Amicus Briefs
[5/14, New York State Rifle & Pistol Association, Inc. v. City of New York, 18-280] 22 Republican AGs and the Governors of Mississippi and Kentucky, led by Louisiana’s Jeff Landry, filed a merits amicus brief challenging the constitutionality of New York City’s permit prohibiting the removal any firearm from the home with two exceptions – practicing at a range in the city or hunting in the state with authorization from the city’s police department. The AGs argue that limiting citizens only to “keeping and bearing arms” in their homes is both inconsistent with history and unreasonable. This inherent natural right to use a firearm for the dual purposes of defending and providing sustenance for self and family is one historically protected against federal infringement by the Second Amendment. AGs previously filed a cert-stage brief in this case.
[5/16, County of Maui v. Hawaii Wildlife Fund, 18-260] 18 Republican AGs, led by West Virginia’s Patrick Morrisey, filed a merits amicus brief urging the court to reverse a lower court ruling concerning the interpretation of the Clean Water Act. The AGs claim that the lower court decision violates their state sovereignty over wholly intrastate resources including groundwater. AGs previously filed a cert-stage brief in this case.
Lower Court Amicus Briefs
[5/3, Culp v. Raoul, 7th Cir.] 15 Republican AGs and the governor of Mississippi, led by Missouri’s Eric Schmitt, filed an amicus brief arguing against Illinois’s restrictions on the rights of non-residents to carry guns in public. The Illinois law at issue would prohibit out-of-state residents from openly carrying a firearm in public without an Illinois-issued concealed carry license unless they live in a state with firearm laws that are “substantially similar.” The coalition urges a rehearing en banc to overturn an earlier court ruling that, according to the AGs, would deprive residents most states of their right to carry a firearm in Illinois.
[5/13, In Re Dial Complete Marketing and Sales Litigation, D.N.H.] 12 AGs, led by Arizona’s Mark Brnovich, urged a New Hampshire federal court to reject a proposed class action settlement against Dial Corporation. This is part of a larger effort by Brnovich, using provisions in the Class Action Fairness Act of 2005 requiring states AG notification of certain federal court class action settlements, to object to allegedly unfair class settlements. The $7.4 million settlement stems from a class action alleging that the Dial Corporation made false and deceptive claims about Dial Complete Liquid Hand Soap’s effectiveness. According to the AGs, the proposed settlement divides the $7.4 million monetary relief unfairly, giving consumers only $2.3 million of the available cash and attorneys $4.4 million. The AGs ask the Court to recognize the settlement as fatally imbalanced and send the parties back to negotiate a proper division of the settlement proceeds, ensuring that class members receive the appropriate percentage of what is already on the table.
[5/15, Zzyym v. Pompeo, 10th Cir.] 9 Democratic AGs, led by Colorado’s Phil Weiser, Oregon’s Ellen Rosenblum, and California’s Xavier Becerra, filed an amicus brief supporting plaintiffs challenging State Department rules requiring that individuals’ passport applications specify a gender. According to the AGs, individuals who are neither male nor female (non-binary individuals) face a threat that their U.S. passport applications will be denied. The attorneys general assert that individuals deserve full legal recognition of their accurate gender identity on passports provided by the U.S. Department of State.
[5/15, East Bay Sanctuary Covenant v. Trump, 9th Cir.] 22 Democratic AGs, led by California’s Xavier Becerra, filed an amicus brief supporting a challenge to the Trump Administration’s efforts to prevent those who have not entered the country at a “port of entry” from applying for asylum in the United States. In the brief, the coalition of attorneys general urges the appellate court to uphold the preliminary injunction secured before the district court, preventing the Trump Administration from implementing its harmful rule that would exacerbate inhumane conditions at our borders and cause significant harm to the states.
[5/17, City of Oakland v. BP, 9th Cir.] 18 Republican AGs, led by Indiana’s Curtis Hill, filed an amicus brief arguing that the cities of San Francisco and Oakland should not be able to use the common law of “public nuisance” to force five fossil fuel companies to pay for the harms the cities say the companies created by contributing to global climate change. A coalition of 11 Democratic AGs previously filed an amicus brief on behalf of Oakland.
[5/24, June Medical Services v. Gee, 5th Cir.] 2 AGs, led by Texas’s Ken Paxton, filed an amicus brief supporting Louisiana’s claim that a U.S. District Court incorrectly denied Louisiana’s motion to dismiss claims in an ongoing lawsuit challenging the constitutionality of dozens of Louisiana pro-life laws regulating abortion clinics and doctors, including laws setting health and safety standards, staffing requirements, and informed-consent measures.
[5/24, DeOtte v. Azar, N.D. Tex.] 21 Democratic AGs, led by Massachusetts’s Maura Healey, filed an amicus brief in DeOtte v. Azar. In the case, the plaintiffs have sought a permanent injunction that would bar the federal government from enforcing the ACA’s requirement that employer-provided insurance include birth control coverage. In the amicus brief, the AGs argue the ACA’s contraceptive mandate does not violate the plaintiffs’ rights under the Religious Freedom Restoration Act because it does not impose a substantial burden on their own exercise of religion.
[5/29, City and County of San Francisco v. Barr, 9th Cir.] 16 Democratic AGs, led by New York’s Tish James, filed an amicus brief supporting the State of California and the City of San Francisco in their lawsuits against the Trump Administration for the denial of Byrne-JAG grants and Community Oriented Policing Services (COPS) Anti-Methamphetamine and Anti-Heroin grants. According to the AGs, these programs provide vital assistance for local law enforcement efforts, including efforts to address the trafficking and sales of illicit drugs.
[5/1, Letter to Congress] A bipartisan coalition of 42 AGs urged Congress to take action to fund the Legal Services Corporation, a nonprofit legal services organization. In a letter to the U.S. House and U.S. Senate Committees on Appropriations, the coalition requested funding for the Legal Services Corporation (LSC) in the Fiscal Year 2020 Commerce, Justice, Science and Related Agencies Appropriations bill.
[5/3, Comments to Department of Energy] 16 Democratic AGs, led by California’s Xavier Becerra, filed comments opposing the Department of Energy’s (DOE) proposal to overturn energy efficiency requirements for certain lightbulbs. The proposal by DOE would exclude decorative general service and incandescent lightbulbs from meeting heightened minimum energy efficiency requirements. These requirements were imposed by the Energy Policy and Conservation Act during the Obama Administration. In the comments, the Attorneys General assert that DOE’s proposal would hurt consumers who would no longer receive the economic benefits from these savings.
[5/6, Letter to FCC] A bipartisan coalition of 42 AGs urged the FCC to adopt its proposed rules on enforcement against caller ID spoofing on calls to the United States originating from overseas, while also addressing spoofing in text messaging and alternative voice services. These provisions are included in the previously passed FCC appropriations authorization bill also known as the RAY BAUM’S Act of 2018. The proposed rule changes the attorneys general are supporting would broaden the authority of the Commission to hold criminals accountable for the significant harm they inflict on U.S. consumers.
[5/6, Comments to Department of Energy] 15 Democratic AGs and the City of New York, led by California’s Xavier Becerra, filed comments urging the Department of Energy (DOE) to withdraw its proposal to revise its Process Rule. Adopted in 1996, the rule provides guidance requires DOE meets an Energy Policy Conservation Act (EPCA) mandate to create energy conservation standards that benefit the public in a timely manner. In the letter, the coalition asserts that the revisions proposed by DOE would unlawfully impede DOE’s energy efficiency rulemaking and are contrary to energy efficiency requirements under the EPCA. DOE’s proposed revision would create extra steps and thresholds as part of the rulemaking process to make adoption of energy efficiency standards more difficult.
[5/8, Letter to Congress] A bipartisan coalition of 38 AGs wrote to congressional leaders urging them to enact the SAFE Banking Act or similar measures that would allow legal marijuana related-businesses access to the federal banking system. The attorneys general note that to date, thirty-three states and several U.S. territories have legalized the use of medical marijuana. However, marijuana is classified as an illegal substance by the federal government and therefore banks that provide services to state-licensed medical marijuana businesses could be criminally and civilly liable under the federal Controlled Substances Act and certain federal banking statutes. This has significantly inhibited and restricted the ability of financial institutions to provide services to businesses and companies.
[5/10, Letter to Congress] 19 Democratic AGs, led by New York’s Tish James, called on Congress to reject “deep and punishing” cuts that the Trump Administration has proposed for the Environmental Protection Agency (EPA). In the letter, the AG coalition writes that the Trump Administration’s proposed budget would “cripple, if not break” the successful partnership that has existed between EPA, and states and local governments for almost a half century. Further, the coalition charges that cuts of the magnitude proposed would take “our nation back to a time when air and water pollution was widespread, contaminated sites routinely imperiled the health of communities, and unregulated toxic chemicals in food, water, and the environment were a relentless danger to the safety of Americans.”
[5/13, Letter to Department of Labor] 12 Democratic AGs, led by New York’s Tish James, express concern that the Department of Labor is not advising individuals and small groups enrolled in Association Health Plans (AHPs) – health plans that employer groups and associations offer to provide health coverage for employees – that their health plans must comply with the Affordable Care Act (ACA) and offer the essential health benefits package.
[5/15, Comments to CFPB] 25 Democratic AGs, led by New Jersey’s Gurbir Grewal and the District of Columbia’s Karl Racine, filed an official comment letter with the Consumer Financial Protection Bureau (CFPB) opposing the Bureau’s proposed repeal of rules adopted in 2017 that aimed to protect consumers from excessive interest rates and predatory lending practices. The letter argues that eliminating the 2017 protections, which were set to go into effect in August 2019, would harm consumers, reduce states’ ability to protect their residents from predatory lending, and is inconsistent with the CFPB’s legal obligations to protect consumers from unfair and abusive practices.
[5/15, Letter to CFPB] 12 Republican AGs, led by Arkansas’s Leslie Rutledge and Indiana’s Curtis Hill, sent a letter in support of the rule proposed this year by the Consumer Financial Protection Bureau (CFPB) that would replace a 2017 CFPB rule governing small, short-term loans. The states contend that the CFPB should recognize them as the frontline consumer defenders and that the 2017 rule improperly tried to cut the states out of the consumer-protection picture. According to the AGs, this hurt consumers’ freedom to choose which financial products best serve their own interests.
[5/21, Comments to Department of Labor] 15 Democratic AGs, led by California’s Xavier Becerra, filed comments opposing a proposed rule that the AGs argue would potentially exclude millions of Americans from federal overtime protections. Specifically, the proposed rule would significantly expand provisions that exempt certain employees from protections under the Fair Labor Standards Act, including the right to overtime pay. The AGs urge the U.S. Department of Labor (DOL) to issue a final regulation in line with DOL’s existing Obama-era 2016 final rule.
[5/23, Letter to Congress] A bipartisan coalition of 47 states urged Congress to amend the Communications Decency Act to ensure that state and local authorities are able to protect citizens online from the promotion of illegal activity, including black-market drug sales. According to the AGs, the request to amend the Act will also allow states to take action against individuals promoting illegal activity and using the Act to claim freedom of expression to evade prosecution.
[5/24, Letter to Department of Education] A bipartisan coalition of 52 AGs sent a letter urging the U.S. Department of Education (DOE) to automatically forgive the student loans of veterans who became totally and permanently disabled in connection with their military service. The coalition called on DOE to develop a process to automatically discharge the student loans of veterans determined by the Department of Veterans Affairs to be eligible for such relief. While the automatic discharge process is in development, the letter proposes, DOE should halt debt collection efforts targeting disabled veterans, and clear their credit reports of any negative reporting related to their student loans.
[5/24, Comments to EPA] 16 Democratic AGs and 4 environmental agencies, led by New York’s Tish James, argue that any attempt to roll back state oversight of federal projects under Section 401 of the Clean Water Act (CWA) would be unlawful. The letter responds to the EPA’s request for recommendations to revise existing guidance and regulations implementing Section 401. According to the AGs, the statute preserves states’ authority to protect the quality of the waters within their borders. The EPA’s invitation begins the implementation of President Trump’s April 2019 Executive Order concerning the CWA.
[5/24, Comments to EPA] 7 Republican AGs, led by Louisiana’s Jeff Landry, wrote to support the EPA’s rule-making effort in response to the President’s Executive Order on Energy Infrastructure and Economic Growth. According to the states, without proper checks on centralized programs like the Clean Water Act, the incentive for misuse exists. Section 401 of the Clean Water Act has been manipulated to block infrastructure projects that are in the public interest of individual states and the nation as a whole. Using WQC approvals as a delay tactic to block vital energy infrastructure projects in abuse of the power committed to the States and inconsistent with our shared obligations under the program. These disruptions burden interstate commerce and negate the CWA’s intent of providing the consistent and reliable permitting process.
[5/7, New Jersey v. U.S. Department of Justice, 3:19-cv-12218, D.N.J.] New Jersey AG Gurbir Grewal today filed a lawsuit against the U.S. Department of Justice (DOJ), alleging that it has violated the Freedom of Information Act (FOIA) by failing to provide answers in response to New Jersey’s demand for any documents linking DOJ’s recent crackdown on state-sanctioned online gaming to the lobbying efforts of casino magnate Sheldon Adelson.
[5/8, Washington State, FOIA] AG Bob Ferguson settled a May 2018 lawsuit against the EPA after the EPA failed to respond to a Freedom of Information Act (FOIA) request. The FOIA request sought communications between the EPA and advisory committee members regarding the agency’s new policy barring scientists who receive EPA grants from serving on advisory committees. In addition to providing the documents, the EPA must pay $6,000 in attorney costs and fees to the Washington Attorney General’s Office.
[5/21, California v. Azar, 3:19-cv-02769, N.D. Cal.] California AG Xavier Becerra filed a lawsuit against the “Conscience Rule” that AG Becerra argues would deny care based on religious or moral objections without providing referrals to the patients in need. This lawsuit is similar to the multistate lawsuit led by New York filed the same day.
[5/28, Washington v. Azar, 2:19-cv-00183, E.D. Wash.] Washington AG Bob Ferguson filed a lawsuit against the “Conscience Rule” that AG Ferguson argues would jeopardize access to reproductive health care, particularly for low-income, rural and working poor patients and allow providers to discriminate against LGBTQ individuals. This lawsuit is similar to the multistate lawsuit led by New York filed a week earlier.
Opioid-Related Developments
[5/5, West Virginia, McKesson] Gov. Jim Justice and AG Patrick Morrisey announced a $37 million settlement with McKesson Corporation pushing the total paid in West Virginia’s pursuit of 13 pharmaceutical wholesalers to in excess of $84 million. The $37 million settlement represents the largest state settlement of its kind in the nation against any single pharmaceutical distributor.
[5/6, New Jersey, New Regulations] AG Gurbir Grewal and the New Jersey Division of Consumer Affairs, together with the New Jersey Coordinator for Addiction Responses and Enforcement Strategies (“NJ CARES”), today announced a series of regulatory actions that will advance the State’s battle to end the opioid epidemic, including proposed rules that will expand access to the prevention and treatment of opioid use disorder through telemedicine.
[5/9, Michigan, Requests for Proposals] Michigan AG Dana Nessel issued Requests for Proposals for attorneys and law firms anywhere in the country that have the experience and resources to pursue claims against manufacturers, distributors and other responsible parties related to both opioids and per- and polyfluoroalkyl substances (PFAS).
[5/10, North Dakota, Purdue Pharma] A state court judge granted summary judgment to Purdue Pharma in AG Wayne Stenejhem’s opioid-related lawsuit. This is the first and only state AG case against a pharmaceutical company that has been dismissed in its entirety during the current wave of opioid litigation.
[5/14, Pennsylvania, Purdue Pharma] AG Josh Shapiro announced a lawsuit against Purdue Pharma, accusing the company of a multi-faceted, illegal effort to market OxyContin in Pennsylvania. Shapiro’s suit is the first to specifically detail Purdue’s barrage of sales representatives targeting Pennsylvania doctors as a key facet of their campaign to push addictive opioids on Pennsylvanians. The lawsuit alleges that Purdue launched an illegal marketing campaign of deception targeting Pennsylvania doctors and patients to change attitudes, practices, and the culture surrounding pain management.
[5/14, Tennessee, Endo Pharmaceuticals] AG Herbert Slatery sued Endo Pharmaceuticals and Endo Health Solutions Inc. (Endo) for making unlawful and false claims about the safety and benefits of its opioid products. The allegations in the State’s 180-page complaint detail how Endo deceptively marketed its opioid products as being less addictive and more effective than others on the market. It did this despite evidence to the contrary, including the FDA’s explicit rejection of Endo’s claim that Opana ER was resistant to abuse as well as overwhelming evidence that Opana ER was being abused throughout Tennessee.
[5/16, Oregon, Purdue Pharma] AG Ellen Rosenblum filed a new complaint in an existing state lawsuit against Purdue Pharma, now adding the Sackler family as defendants. The new complaint alleges that Purdue and the Sacklers fraudulently transferred billions of dollars out of Purdue while at the same time engaging in unlawful marketing and promotion of OxyContin.
[5/16, Minnesota, Purdue Pharma] Minnesota Attorney General Keith Ellison announced that the State of Minnesota has asked the Hennepin County District Court for permission to amend its lawsuit against opioid manufacturer Purdue Pharma to add eight members of the Sackler family, which owns and operates Purdue, as individual defendants.
[5/21, Vermont, Purdue Pharma] Attorney General T.J. Donovan sued eight members of the Sackler family, owners of Purdue Pharma. The lawsuit alleges that for over two decades the Sacklers personally oversaw Purdue’s deceptive marketing campaign. They directed Purdue’s strategy to minimize the health risks of opioids, claiming that prescription drugs were rarely the cause of abuse, addiction, or death. The Sacklers also directed Purdue to promote higher dose products, which were more lucrative — and more dangerous and addictive.
[5/21, Indiana, Purdue Pharma] Attorney General Curtis Hill filed a lawsuit against members of the Sackler family, alleging that as owners and directors of Purdue Pharma the Sacklers have played a key role in worsening the opioid crisis in Indiana. The lawsuit alleges that these members of the Sackler family – who individually served as Purdue Pharma’s CEO, vice presidents and/or board directors – violated the Deceptive Consumer Sales Act, the Prescription Drug Discount and Benefit Card Statute, the False Claims Act and the Medicaid False Claims Act, among other unlawful activities.
[5/28, Oklahoma, Janssen Pharmaceuticals] Trial began in AG Mike Hunter’s lawsuit against the opioid manufacturer. This is the first opioid-related lawsuit brought by an AG to reach trial.
[5/30, Maryland, Purdue Pharma] Maryland AG Brian Frosh filed suit against opioid manufacturers Purdue Pharma, L.P., Rhodes Pharmaceuticals, and related entities, alleging the companies engaged in a scheme to market prescription opioids through unfair and deceptive trade practices. The new charges follow charges filed the previous week against members of the Sackler family who owned, directed, and controlled Purdue and Rhodes and their opioid sales and marketing practices.
[5/30, New Jersey, Purdue Pharma] Attorney General Gurbir Grewal announced that the State has filed a lawsuit against eight members of Purdue Pharma’s founding Sackler family, alleging that their greed-driven opioid marketing and sales strategy fomented the opioid crisis that continues to claim lives in New Jersey and across the nation.
[5/30, Oklahoma, Teva Pharmaceuticals] AG Mike Hunter announced an $85 million settlement agreement with Israeli-based Teva Pharmaceuticals for its role in fueling the state’s opioid epidemic. Teva is the second defendant group to settle with Oklahoma. In March, Purdue Pharma settled with the state for $270 million, with most of the money going to the Oklahoma State University Center for Wellness and Recovery.
Other Lawsuits/Settlements/Investigations
[5/6, Illinois, Equifax] AG Curtis Hill filed a lawsuit against Equifax seeking civil penalties, consumer restitution, costs and injunctive relief following the finance company’s massive 2017 data breach that compromised the sensitive personal information of 147.9 million Americans.
[5/9, Washington State, Amazon.com] AG Bob Ferguson settled with Amazon.com, committing the company to nationwide corporate reforms after his office’s investigation found dozens of children’s school supplies sold on its online marketplace had illegal levels of toxic metals lead and cadmium. In addition, Amazon will pay the Attorney General’s Office $700,000, which will be used to fund future environmental protection efforts, including future investigations into toxic children’s products.
[5/14, Washington State, No-Poach Contracts] AG Bob Ferguson settled with five additional corporate chains following the state’s continuing investigation into no-poach clause practices nationwide. The clauses prohibit employees from moving among stores in the same corporate chain. The settlements with AAMCO, Famous Dave’s, Meineke, Qdoba and Villa Italian Kitchen require the companies to stop adding no-poach clauses to franchise contracts and to remove all existing clauses. All five must make these changes nationwide. The five join 57 other corporations that have now signed legally enforceable agreements with the Washington State Attorney General’s Office to end the practice.
[5/15, North Carolina, JUUL E-Cigarettes] North Carolina Attorney General Joshua Stein filed a lawsuit Wednesday against popular e-cigarette maker Juul Labs, making it the first state to take legal action against the company. The state is asking the court to apply a marketing and advertising ban that mimics that of the Tobacco Master Settlement Agreement, which went into effect in 1998. It would prevent the company from creating emails, advertising or social media marketing aimed at minors. It also asks the court to block Juul from advertising outdoors and near schools or playgrounds, sponsoring “sports, entertainment, or charity events,” offering free or discounted samples, or promoting products with fashion or media outlets that primarily target consumers under 30.
[5/24, Michigan, Clergy Investigation] Michigan AG Dana Nessel announced that five men who were priests have been charged with a total of 21 counts of criminal sexual conduct as part of the AG’s larger investigation.
AG Powers and Duties
[5/3, Florida] The Florida Legislature passed HB 1253, sending the legislation to Governor Ron DeSantis for final approval. The legislation will allow the Attorney General’s Office to access limited information from Florida’s Prescription Drug Monitoring Database to assist with the state’s civil case against the nation’s largest opioid distributors, manufacturers and pharmacies.
[5/15, Connecticut] The Connecticut State House passed H.B. 7222, An Act Concerning the Duties of the Office of the Attorney General, which formally recognizes the Attorney General’s role in combating civil rights violations. According to the AG, the legislation brings Connecticut into line with other states by formalizing the ability of the Attorney General to investigate and – where the evidence warrants – bring civil rights lawsuits to stop large-scale, systematic violations of existing constitutional and statutory rights.
[5/21, New York] The state Assembly passed an exception to the state’s “double jeopardy” law by establishing a narrow set of criteria that would ensure that in the event that a person receives a presidential pardon based on a close relationship or self-interest, New York would preserve its authority to pursue legal action against that individual for crimes committed under state law. The legislation passed the State Senate on May 8th. AG Tish James had drafted the initial legislation.
[5/21, Iowa] Governor Kim Reynolds vetoed Senate File 615, which would have limited the ability of the AG to bring litigation outside the state courts of Iowa without the permission of the other branches. In a “good faith” agreement with the governor, AG Tom Miller agreed that any lawsuits brought without the governor’s consent would be in Miller’s name only, as opposed to the state.
[5/23, Colorado] Governor Jered Polis signed HB19-1289 into law, legislation that strengthens the Colorado Consumer Protection Act (CCPA) and gives the Attorney General’s office more ability to take action against allegedly unfair business practices. The new law changes the existing requirement from having to demonstrate a company had a specific intent to commit a deceptive business practice that has a significant public impact to being able to hold bad actors accountable early on so long as their actions recklessly harm consumers. Additionally, the bill adds a “catch-all” provision against any deceptive practice that harms consumers rather than the list of narrowly defined acts and practices the CCPA previously defined as fraud.
[5/29, 5/30, Illinois] The Illinois Senate passed legislation Senate Bill 161 to establish the Worker Protection Unit within the office of the Attorney General, which will have the authority to enforce existing laws that protect workers’ rights and lawful businesses in Illinois. The bill previously passed the House with a 99-16 vote. The Illinois legislature also enacted legislation that, among other provisions, supplements the Attorney General’s existing authority to enforce consumer protection statutes against allegedly unlawful and deceptive marketing practices by alternative retail electric and gas suppliers.
Other Federal/State/Local Conflicts
[5/14, Indiana, Abortion Laws] AG Curtis Hill filed a motion to strike the appearance of an attorney enlisted by Marion County Prosecutor Terry Curry to represent the prosecutor in a case involving a challenge to an Indiana abortion law. According to General Hill, Prosecutor Curry’s effort to appoint his own attorney in this case is not the first time he has interfered with efforts by the attorney general to defend state law. Hill stated that “The legislature has designated only one official — the attorney general — to be the voice of all state officials in court,” “To permit others to speak for the state would engender chaos and confusion as to the position of the people of Indiana before state and federal courts.”
[5/16, Texas, Adoption Agency Funding] AG Ken Paxton rejected a demand from the chairmen of two U.S. House Ways and Means subcommittees to provide confidential documents and information related to a letter the attorney general sent to the U.S. Department of Health and Human Services (HHS) last year, urging repeal of an unlawful Obama-era rule on child welfare funding that Paxton argues harms children and families by limiting adoption agencies’ access to public resources based on the religious beliefs of agency employees. The attorney general states that he rejected the House subcommittees demands because the Subcommittee’s attempt to exercise control over core state functions violates constitutional principles of federalism.