State AG News: Consumer Fraud, Federal Funding, Civil Penalties (February 5-11, 2026)

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 February 5-11, 2026:

Multistate

• A multistate coalition of 48 attorneys general obtained a settlement with Lannet Company, Inc., Bausch Health US, LLC, and Bausch Health Americas, Inc. totaling $17.85 million. The coalition alleged that the drug manufacturers entered into a price fixing scheme that inflated prices on generic drugs.
• A multistate coalition of 21 attorneys general, four cities, and one county, put forward a comment letter opposing the National Highway Traffic Safety Administration's proposed rule that would weaken fuel economy standards and remove the CAFE credit trading program. The coalition argues that the new rule is illegal and would harm consumers and the EV industry.

• A multistate coalition of 19 attorneys general entered into an agreement with the Trump administration that would prevent it from withholding nearly $575.2 million in federal funding for state and local education agencies that refuse to abandon diversity, equity, inclusion, and accessibility programs. This agreement resolved the coalitions lawsuit, which argued that the Trump administration's interpretation of Title VI violated the Spending Clause, the Appropriations Clause, the separation of powers, and the Administrative Procedure Act.
• A multistate coalition of five attorneys general from California, New York, Colorado, Illinois, and Minnesota, obtained a preliminary injunction that blocked the Trump Administration from withholding federal funding for childcare and family assistance. The coalition argues that the administration's claims of widespread fraud are unfounded, and its withholding of federal funds violates the Administrative Procedure Act, the separation of powers, and the Appropriations and Spending Clauses.
• A multistate coalition of five attorneys general from Florida, Texas, Nebraska, Iowa, and Montana notified U.S. Plastics Pact, the Consumer Goods Forum, and the Sustainable Packaging Coalition that they may be subject to antitrust liability for their coordinated effort towards sustainable production and packaging initiatives. The coalition argues that the environmental organization's efforts may reduce competition, limit consumer choice, and degrade product quality.

Arizona

• Attorney General Mayes resolved her lawsuit with Choice Home Warranty after it agreed to enter into a judgment with the State to reform its sales practices and pay 11.8 million in fees. The lawsuit, filed in 2019, alleges that Choice Home Warranty had a pattern and practice of failing to replace home appliances it had advertised as being covered. The State brought the action under the Arizona Consumer Fraud Act seeking restitution, civil penalties, disgorgement of profits, and injunctive relief.

California

• Attorney General Bonta filed felony charges against seven individuals for hospice fraud. The charges arose out of an investigation by the California Division of Medi-Cal Fraud and Elder Abuse that revealed the hospice organizations had developed a sophisticated conspiracy to defraud Medi-Cal and Medicare.

Florida

• Attorney General Uthmeier created the office of Consumer Harm from International Nefarious Actors (CHINA) Prevention Unit. The purpose of the office is to combat threats posed by foreign adversaries to consumers and protect data privacy. The office sent letters to manufacturers for information regarding foreign ownership and relationships.

New Jersey

• Acting Attorney General Davenport obtained a judgment against Federal Auto Brokers, Inc., doing business as BM Motor Cars, for violations of the Consumer Fraud Act, Motor Vehicle Advertising Regulations, and a 2018 Consent Order. The judgment requires the business to pay $793,500 in civil penalties after finding that it intentionally hid critical vehicle information such as mileage and price from consumers.

New York

• Attorney General James reclaimed more than $4.7 million from two New York City truck rental companies for their tax evasion scheme. The two companies—Able Rentals, Inc. and Abarn Equipment Corp., were found to have kept customers' sales tax payments and underreported their revenue since 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.