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. Here are last week's updates.
Multistate
- A bipartisan multistate coalition of all 50 states, the District of Columbia, and the Northern Mariana Islands filed an amici curiae brief in Yoon v. Collins, a case before the Court of Appeals for Veterans Claims in which veterans claiming to be eligible for both the Montgomery GI Bill and the Post-9/11 Veterans Educational Assistance Act have sued the U.S. Department of Veterans Affairs regarding benefits limits. The brief argues that it was Congress's intent to provide expansive education benefits to veterans and their families and that the denial of these benefits violates the Supreme Court's recent ruling in Rudisill v. McDonough that a veteran whose length of service qualifies him for entitlements under both G.I. Bills is "separately entitled to each of [the] two educational benefits."
- A multistate coalition of attorneys general filed a motion for a preliminary injunction to halt the mass firing of U.S. Department of Education employees by the Trump Administration as part of its efforts to dismantle the Department entirely. The motion argues that the mass firings violate the Administrative Procedures Act and that President Trump's March 20 Executive Order instructing the Department to take all steps possible to facilitate its own closure was an ultra vires act that violated the Separation of Powers and Take Care Clause of the U.S. Constitution.
- A multistate coalition of 23 state attorneys general sent a letter to the Secretary of the Department of the Interior Doug Burgum expressing their endorsement of Executive Order 14156 and President Trump's recent comments in support of the coal industry. The letter argues that coal is essential to alleviate pressure on existing energy infrastructure, and that without it we will not be able to support critical tech development in areas like Artificial Intelligence, semi-conductor manufacturing, and quantum computing.
- A number of state attorneys general released warnings to consumers regarding the recent Chapter 11 bankruptcy filing by 23andMe, a genetic testing company that stores a vast amount of genetic data subject to various state and federal privacy laws. The various warnings generally advise consumers on how to delete their data from 23andMe's website, and informs them of their respective States' privacy protections.
- A multistate coalition of 19 attorneys general filed an amicus brief in the U.S. District Court of Massachusetts, supporting the plaintiffs' challenge to the Trump Administration's early terminations of Temporary Protected Status (TPS) for Haiti and Venezuela. The amicus briefurges the court to postpone the terminations while litigation proceeds, arguing that the terminations would irreparably harm the coalition states' families and economies.
- A multistate coalition of 23 State attorneys general sought enforcement of the District Court for the District of Rhode Island's preliminary injunction ordering the Trump administration to unfreeze Federal Emergency Management Agency funding. Despite the preliminary injunction, the administration has not yet complied with the order.
- A multistate coalition of 27 state attorneys general filed an amicus brief supporting President Trump's invocation of the "Alien Enemies Act" to deport alleged members of the Venezuelan gang Tren de Aragua. The amicus brief argues that the district court decision halting the Administration's action "failed to fully weigh the public interest" and warned that the decision would "undermine the security of the States."
- A multistate coalition of 16 attorneys general filed an amicus brief in Svitlana Doe, et al., v. Kristi Noem, et al., challenging President Trump's termination of certain immigration parole processes for immigrants from Afghanistan, Ukraine, Cuba, Haiti, Nicaragua, and Venezuela. The amicus brief argues that parole pathways for vulnerable immigrants are important to prevent the separation of families and endangerment of parolees, and that immigrants from these countries hold key jobs in state and local workforces.
District of Columbia
- District of Columbia Attorney General Brian Schwalb filed a lawsuit against GoBrands, Inc. and GB Logistics, LLC ("Gopuff") for allegedly violating the District's Minimum Wage Revision Act ("MWRA"), Wage Payment and Collection Law ("WPCL"), Sick and Safe Leave Act ("SSLA"), Unemployment Compensation Act ("UCA"), Universal Paid Leave Act ("UPLA"), Workers' Compensation Act ("WCA"), and False Claims Act ("FCA"). The complaint alleges that Gopuff, a food delivery service, unlawfully misclassified delivery workers as independent contractors and thereby gained an unfair advantage over competitors in addition to costing taxpayers by denying employment benefits and relying on District programs. The complaint seeks declaratory and injunctive relief; damages and liquidated damages payable to delivery workers; compensatory and punitive damages payable to delivery workers; statutory penalties for each violation of the MWRA, SSLA, and WPCL; UPLA contributions, interest, and penalties payable to the District; civil penalties for each violation of the WCA payable to the District; treble damages and civil penalties payable to the District for violations of the FCA; and costs and attorneys' fees.
Florida
- Florida Attorney General James Uthmeier initiated an investigation into whether proxy advisors Glass Lewis & Co. and Institutional Shareholder Services Inc. (ISS) violated the Florida Deceptive and Unfair Trade Practices Act and the Florida Antitrust Act of 1980. The investigation is based on allegations that Glass Lewis and ISS mislead clients and the public by claiming that their Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) investing policies "were not politically motivated and instead based purely on economic factors."
- Florida Attorney General Uthmeier secured final consent judgments permanently banning five moving brokerage companies from operating in Florida and requiring them to pay $4,139,239 in damages to the State and consumers. The companies mislead consumers by providing low quotes to secure large, up-front deposits from consumers and then outsourcing the work to unvetted subcontractors who demanded additional payment from customers.
Minnesota
- Minnesota Attorney General Keith Ellison secured a $1,000,000 settlement from MV Realty PBC, LLC, the Minnesota arm of a Florida-based company, regarding hidden oppressive terms in so-called "Homeowner Benefit Agreements" ("HBA"s) in violation of Minnesota contract law. The settlement permanently bans MV Realty from doing business in Minnesota, prohibits the company's main officers from engaging in residential real estate brokerage work in the state for five years, and declares the company's HBAs null and void.
New Jersey
- New Jersey Attorney General Matthew Platkin announced a Finding of Probable Cause against the owner of an apartment complex, Highland Living LLC. The Finding alleges that Highland Living violated the New Jersey Law Against Discrimination by discriminating against Section 8 voucher recipients via its minimum-income requirement.
New York
- New York Attorney General James secured a $55,000 settlement from Lab Worq, LLC, for violating New York Executive Law § 63(12) and New York General Business Law §§ 349 and 350 by advertising that they delivered Covid-19 test results within 24 hours, but actually taking on average over 80 hours. The settlement requires that Lab Worq cease all such misleading advertising practices.
Ohio
- Ohio Attorney General Dave Yost filed a lawsuit against luxury home décor retailer Burke Décor for allegedly committing unfair or deceptive acts in violation of the Ohio Consumer Sales Practices Act and the Failure to Deliver Rule. The complaint alleges that Burke failed to deliver goods, did not offer full refunds or replacements, and routinely mislead consumers on delivery dates and order statuses. The suit is seeking declaratory and injunctive relief, as well as civil penalties in the amount of $25,000 for each violation, reimbursement to all affected consumers, and court costs.
- Ohio Attorney General Yost filed a motion seeking lead-plaintiff status in a securities class-action lawsuit against Block Inc., a financial tech company that operates Cash App and Square. The lawsuit alleges that Block violated the Securities Exchange Act of 1934 and Rule 10b-5 by misleading investors about widespread compliance failures on Block's payment that enabled thousands of payments to be made for illegal activity. The suit seeks compensatory damages, attorneys' fees and costs, and any equitable or injunctive relief deemed appropriate.
Oregon
- Oregon Attorney General Dan Reyfield issued guidance for educational institutions on education policy and diversity initiatives to clarify recent federal legal developments and provide actionable steps for compliance. The guidance states that educational institutions "can and should continue to promote diversity, equity, inclusion, and accessibility," and that only certain race-based admissions policies are prohibited. The guidance recommends that schools and colleges review and revise policies, focus on holistic approaches, strengthen community and stakeholder partnerships, provide training, and advocate for equity.
Rhode Island
- Rhode Island Attorney General Peter Neronha filed a lawsuit against a debt-management service provider, Michael Moccia and Palisade Legal Group, PLLC ("Palisade"). The suit alleges that Palisade violated the State's Unfair and Deceptive Trade Practices Act by disguising the business as a law firm, charging illegal and excessive fees, and damaging consumers' credit scores. The suit is seeking injunctive relief, civil penalties, and fee refunds for affected consumers.
Texas
- Texas Attorney General Ken Paxton filed a lawsuit against Coppell Independent School District ("CISD") alleging that CISD violated Executive Order No. GA-55 and the Education Code. Tex. Edu. Code § 28.0022(a)(4) by instructing students on "critical race theory (CRT) and related topics." The filing cites to a social media video uploaded by an undercover journalist from Accuracy in Media, in which CISD's Director of Curriculum and Instruction is recorded saying that despite state prohibitions on "CRT," "we've gotten around it by saying we're not teaching it." The suit seeks injunctive relief prohibiting CISD from teaching, using funds for, or distributing anything related to so-called "CRT."
- Texas Attorney General Paxton announced the issuance of a Civil Investigative Demand (CID) to Community Capital Partners, LP regarding its real estate development, EPIC City. The CID is part of a larger investigation into potential violations of Texas consumer protection laws and relates to the company's affiliation with the East Plano Islamic Center.
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