State AG News: AI Task Force, Consumer Fraud, Funding (November 13-19, 2025)

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 November 13-19, 2025:

Multistate

• A bipartisan coalition of state attorneys general launched a new AI Task Force in conjunction with OpenAI and Microsoft. The task force will focus on identifying emerging AI issues that could pose a risk to the public, creating safety guidelines for AI developers to follow, and tracking new developments in AI.
• A multistate coalition of 17 attorneys general filed an amicus brief in the U.S. Court of Appeals for the Tenth Circuit in support of Defendants-Appellants in VoteAmerica, et al. v. Scott Schwab, et al. The brief argues in favor of a Kansas law prohibiting entities from sending partially or fully completed advance ballot applications for registered voters to submit.

• A multistate coalition of 23 attorneys general filed an amicus brief in the U.S. Supreme Court in Donald Trump, President of the United States, et al. v. Rebecca Kelly Slaughter, et al. The brief argues in support of Rebecca Kelly Slaughter, a former Federal Trade Commission (FTC) commissioner challenging her removal from the FTC by President Trump.
• A multistate coalition of 22 attorneys general filed a preliminary injunction motion to prevent the U.S. Environmental Protection Agency (EPA) from terminating Solar for All funding. The motion argues that the EPA's actions violate the Administrative Procedures Act, and that the states will suffer irreparable harm from the termination of funding to build out community solar systems.
• Attorney General James announced that a U.S. Bankruptcy court has approved Purdue Pharma's bankruptcy plan. The approval finalizes a $7.4 billion settlement reached by a bipartisan coalition of state attorneys general with Purdue that will be used to fund addiction treatment, prevention, and recovery programs.

Arizona

• Attorney General Kris Mayes defeated a motion to dismiss a consumer fraud lawsuit against CBR Systems, Inc ("CBR").The lawsuit alleges that CBR violated Arizona's Consumer Fraud Act by misleading consumers regarding services for umbilical cord blood banking and by engaging in a kickback scheme with healthcare providers.

California

• Attorney General Rob Bonta reached a stipulated agreement with the U.S. Department of Education ("DOE") regarding access to remaining funds previously awarded during the COVID-19 pandemic to support K through 12 schools. The DOE agreed to cease its efforts to rescind access to the funds, leaving in place the preliminary injunction California previously secured.

Colorado

• Attorney General Phil Weiser reached a settlement agreement with PetSmart LLC for allegedly violating the Colorado Consumer Protection Act and the Colorado Restrictive Employment Agreements Act. PetSmart allegedly advertised an entry level dog groomer training program as "free" but required repayment of $5,500 in training costs if the enrollees did not work for PetSmart for at least two years. The settlement enjoins PetSmart from requiring repayment or advertising its training program as free unless it complies with Colorado law in doing so; requires that PetSmart release any affected employees from their obligations under the repayment agreements; and imposes $225,000 in civil penalties.

Illinois

• Attorney General Kwame Raoul secured a $275,000 settlement with Staffing Network LLC, a temporary staffing agency that allegedly violated the Illinois Antitrust Act by agreeing with five other staffing agencies and a shared client not to poach employees from each other. The settlement also enjoins Staffing Network from engaging in the same conduct, requires compliance with the State's discovery requests in its ongoing suit against Staffing Network's alleged co-conspirators, and imposes various reporting, notice, and training requirements regarding Staffing Network's temporary workers.

Maryland

• Attorney General Anthony G. Brown won a $1,000,000 judgment against Korey Homes Building Group, LLC for violating Maryland's Consumer Protection Act by failing to provide services and misappropriating funds.The court order enjoins the company and its owners from engaging in similar conduct, and divides the judgment between civil penalties, costs, and repayment to defrauded consumers.

New York

• Attorney General Letitia Jamies secured the dismissal of a U.S. Department of Justice lawsuit that challenged New York's Protect Our Courts Act as preempted by federal immigration law. The Protect Our Courts Act prohibits immigration officials from arresting people at state courthouses.

Ohio

• Attorney General Dave Yost announced a lawsuit against Ecommerce Business Builders (EBB) for allegedly violating Ohio's Business Opportunity Purchasers Protection Act.The lawsuit accuses EBB of making misleading claims, accepting excessively large down payments, and failing to provide promised services to assist consumers in creating online stores.

Oregon

• Attorney General Dan Rayfield secured a settlement with MV Realty for allegedly violating the Oregon Unlawful Trade Practices Act by using deceptive marketing to convince consumers to sign highly unfavorable 40-year "Homeowner Benefit Agreements." The agreements gave MV Realty decades-long exclusive home listing rights, and allowed MV Realty to file liens to block consumers from refinancing, selling, or accessing the equity in their property. The settlement requires that MV Realty release consumers from the agreements and liens, and imposes civil penalties.

Texas

• Attorney General Ken Paxton filed a lawsuit against three university work-study programs for allegedly discriminating against religious students and sectarian employers. The lawsuit argues that the programs violated the First Amendment by requiring that State-funded activities be "nonsectarian."

Vermont

• Attorney General Charity Clark secured a $500,000 settlement with Walgreens for alleged violations of Vermont's Consumer Protection Act.An investigation found that Walgreens was charging customers more at check out than the prices advertised on shelves, after already being warned by state inspectors to correct those same pricing inaccuracies. The settlement also imposes certain reporting requirements, subjects the company to third-party audits, and compels Walgreens to maintain pricing compliance policies and procedures.

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