United States: State AGs In The News - December 11th, 2014

Last Updated: December 23 2014
Article by Bernard Nash and Lori E. Kalani

Hot News

Dickstein Shapiro Presents a Webcast on Antitrust Scrutiny: Ways to Plan, Prepare and Respond

  • Dickstein Shapiro is partnering with the National Constitution Center to provide a 90-minute webcast on December 17th at 1:00 PM ET discussing recent developments in antitrust laws.
  • Jim Martin and Jennifer Hackett, both partners in Dickstein Shapiro's Antitrust & Financial Services Practice, will provide analysis on the evolving governmental framework for antitrust scrutiny and advice for designing customized compliance programs.
  • To access a recording of the webcast, please click here. The presentation slides are also available here.

More States Join Texas Lawsuit Against President's Immigration Order

  • Seven additional states have joined Texas AG Greg Abbott's lawsuit challenging President Obama's Executive Order on immigration as unconstitutional and in violation of the U.S. Administrative Procedures Act.
  • The amended complaint now lists a total of 25 plaintiffs, including 19 State AGs.

Antitrust

Idaho Attorney General Settles With Physician Group

  • Idaho AG Lawrence Wasden settled with four doctors who allegedly violated the Idaho Competition Act. During negotiations with Madison Memorial Hospital in Rexburg, the doctors allegedly collectively sought compensation, in addition to hospital privileges, in return for providing on-call coverage.
  • AG Wasden clarified that the focus of his investigation was on whether the doctors formed an agreement to cease providing on-call coverage that constituted an unreasonable restraint of commerce in violation of state antitrust law, and not whether the doctors had a right to negotiate increased compensation.
  • The settlement requires that the physicians refrain from conspiring with other physicians in future negotiations with the hospital over compensation. It also requires them to certify their compliance with Idaho Competition Act to AG Wasden for each of the next five years.

Consumer Protection

Forty-Five Attorneys General Settle With Satellite Radio Provider

  • Led by Ohio AG Mike DeWine, 45 states reached a settlement with Sirius XM Radio Inc. for $3.8 million following an investigation of the company's advertising and billing practices. In addition to the payment to the states, Sirius will also provide restitution to consumers who have eligible claims based on the problems identified in the investigation.
  • The settlement resolves allegations that Sirius violated numerous state consumer protection laws through deceptive advertising and billing practices, including: automatically renewing subscriptions without customer consent, making it difficult for customers to cancel service and failing to honor customer requests to cancel once made, failing to provide timely refunds, and refusing to refund unapproved charges.
  • Sirius signed a detailed Assurance of Voluntary Compliance in which it agreed to increase customer disclosure and transparency through a wide range of compliance procedures. Sirius denied any wrongdoing, and stated that it had disclosed all relevant features of its billing practices and had obtained the proper consumer consent at the time of initial purchase.

Data Privacy

Massachusetts Settles With Bank Over Lost Data

  • Massachusetts AG Martha Coakley settled with TD Bank, N.A., to resolve an investigation into a 2012 incident where TD Bank lost unencrypted server backup tapes that contained information, including names, addresses, Social Security numbers, account numbers, and date of birth for approximately 90,000 Massachusetts residents, and failed to comply with state data breach notification requirements.
  • The settlement requires TD Bank to pay $325,000 in civil penalties and $75,000 in attorney's fees and costs. It also requires TD Bank to provide $225,000 to a fund administered by the AG's Office to promote data breach education and fund local programs aimed to increase consumer protection. TD Bank further agreed to encrypt personal information stored on backup tapes, to require third-party service providers to adopt stricter security practices, and to monitor service providers for compliance.
  • Earlier this year, nine states, led by Florida AG Pam Bondi, also reached a settlement with TD Bank for $850,000 to resolve their investigations into the 2012 data breach.

Environment

Attorneys General Pair With Nonprofit Organizations to Challenge EPA Rule at DC Circuit

  • Kansas AG Derek Schmidt, together with Nebraska AG Jon Bruning, filed a petition to the U.S. Circuit Court of Appeals for the District of Columbia challenging the Environmental Protection Agency's Rule requiring states to use a new air pollution estimating model as they create their State Implementation Plans under the U.S. Clean Air Act.
  • AG Schmidt contends that the EPA Rule was promulgated without notice and an opportunity for states to comment. AG Schmidt also contends that the MOVES2014 methodology required by the Rule produces false conclusions regarding the use of ethanol as an additive to gasoline, ultimately harming Kansas's and Nebraska's ethanol industries.
  • The AGs joined as petitioners with Urban Air Initiative Inc. and the Energy Future Coalition. The petition identifies the Energy Future Coalition as "an unincorporated initiative of the Better World Fund, which is in turn a nonprofit publicly supported endowment incorporated in a manner consistent with Section 501(c)(3) of the Internal Revenue Code." It identifies Urban Air Initiative as a "social welfare organization incorporated in a manner consistent with Section 501(c)(4) of the Internal Revenue Code."

False Claims Act

Florida and the U.S. Intervene in False Claims Suit Against For-Profit College

  • Florida AG Pam Bondi joined with the U.S. Attorney for the Southern District of Florida to intervene in a two-yearold lawsuit against FastTrain II Corporation d/b/a FastTrain College, and its owner Alejandro Amor, alleging violations of both the federal and state False Claims Acts.
  • The lawsuit alleges that from at least January 1, 2009 through June 22, 2012, FastTrain and Amor submitted numerous false claims for payment to the U.S. Department of Education by fabricating false documents, such as high school diplomas, and by inducing otherwise ineligible students to falsify applications for federal student aid programs. The lawsuit also alleges that FastTrain kept students on its financial aid recipient list long after those students were no longer attending. In total, FastTrain students received over $6.5 million in Federal Pell Grants and other federally-provided financial aid. FastTrain administered for-profit college programs across seven campuses in southern Florida, but is now defunct.
  • The lawsuit was originally filed on April 17, 2012 by Juan Pena, a former admissions employee of FastTrain. The case, U.S. ex rel Pena v. FastTrain II Corp. 1:12-cv-21431, is pending in U.S. District Court for the Southern District of Florida.

Intellectual Property

Nebraska Ordered to Pay Attorneys' Fees in Failed Attempt to Limit Alleged Patent Trolls

  • The U.S. District Court for the District of Nebraska has ordered the state to pay $725,000 in legal fees to MPHJ Technology Investments, LLC, and ActiveLight, Inc. (formerly known as Activision TV Inc.). MPHJ and ActiveLight were awarded attorneys' fees for prevailing in their action to preempt an investigation by Nebraska AG Jon Bruning.
  • AG Bruning had sought to use state consumer protection and deceptive trade practices laws to prevent MPHJ and ActiveLight from asserting their patent rights, allegedly in bad faith or in a deceptive manner.
  • We have followed this story from the outset, and reported on the court's decision to grant summary judgment to MPHJ and ActiveLight and to enjoin AG Bruning from conducting further investigations or enforcement actions.

States v. Federal Government

Attorneys General Argue Against Preemption by Natural Gas Act

  • Twenty-one State AGs, led by Kansas AG Derek Schmidt, submitted an amici brief in a U.S. Supreme Court case involving natural gas prices and state law. The AGs' brief supports the respondents—manufacturers, public schools, hospitals, and other direct purchasers of natural gas—in arguing that the U.S. Natural Gas Act (NGA) does not preempt state antitrust laws that apply to retail transactions for the sale of natural gas.
  • The core of the AGs' argument is that although the federal government has had a long-standing role in regulating the wholesale markets and interstate transportation of natural gas, it "disavowed any intent to preempt state regulation of retail sales of natural gas."
  • This dispute emerged from multiple lawsuits, some of which were brought individually by the respondents under various state antitrust laws, claiming that the petitioners—mostly energy companies—conspired to fix higher-than-market prices for natural gas sold at the retail level. The petitioners, who were defendants in the state lawsuits, removed the cases to federal court, where they were consolidated in the District of Nevada. The district court ultimately found that the NGA preempted state law. However, on appeal, the 9th Circuit unanimously reversed, and held that the NGA cannot preempt state antitrust in the area of retail sales.
  • The case, Oneok, Inc. v Learjet, Inc., No. 13-271, is scheduled for oral argument on January 12, 2015.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions