State AG Monitor

State AGs in the News

By Bernard Nash , Divonne Smoyer , and Christopher J. Allen on Posted in Consumer Protection, Energy, Environment, Healthcare

Hot News

A Conversation with State Attorneys General Webcast | Wednesday, April 18, 2:00 PM (ET)

Join Doug Gansler, Attorney General of Maryland and incoming president of the National Association of Attorneys General (NAAG), for the next installment of “A Conversation with State Attorneys General,” Dickstein Shapiro’s ongoing webcast series. State AG Practice Partner Divonne Smoyer will interview AG Gansler about his role and priorities as Maryland’s chief legal officer. AG Gansler will also answer questions from the audience. Please click here to register for this complimentary program.

Consumer Protection

Texas AG Obtains $195 Million Verdict against Tax Consultants for Alleged Deceptive Practices

  • Texas AG Greg Abbott announced a $195 million verdict obtained by the State against TaxMasters over allegations that the company made false statements and engaged in other misconduct in offering to assist consumers with IRS tax bills.
  • The verdict results from a lawsuit filed by the State in 2010 alleging that the company misled customers about its service contract terms, failed to disclose its no-refunds policy, falsely claimed that the firm’s employees would immediately begin work on a case when they did not actually begin work until customers paid in-full for services, and in some cases failed to contact and consult with the IRS or appear its client’s behalf.

Healthcare/Pharmaceuticals

Rhode Island AG, Other State Law Enforcement Receive $230 Million from Google Forfeiture over Canadian Drugs

  • Rhode Island AG Peter Kilmartin and other Rhode Island law enforcement agencies will receive $230 million for their part in a joint state-federal investigation into Google’s role in facilitating unlawful pharmaceutical purchases from Canadian pharmacies.
  • Google forfeited a total of $500 million in gross revenue to the state and federal government to resolve allegations that it permitted Canadian pharmacies that allegedly illegally exported drugs into the United States to advertise on its AdWords platform.

9 AGs Settle Fraudulent Billing Claims with Wellcare

  • The AGs of Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Missouri, New York, and Ohio reached a settlement with health insurer Wellcare Health Plans resolving allegations that the company fraudulently billed Medicaid for treatment provided to patients.
  • Under the settlement, the company will pay $137.5 million to resolve allegations that it inflated the amount it claimed to be spending on medical care to avoid returning the money to Medicaid, knowingly retaining overpayments and falsifying data to misrepresent the medical conditions of patients and treatments they received.

Massachusetts AG Settles Fraud Allegations with Medical Testing Company

  • Massachusetts AG Martha Coakley announced a settlement with Calloway Laboratories to settle allegations that the company defrauded Medicaid regarding testing at homes for recovering drug addicts.
  • The company will pay $20 million to resolve allegations that it established straw companies to funnel bribes to managers of homes for recovering drug addicts to entice those managers to require unnecessary urine testing, for which the company billed Medicaid.

Energy

Massachusetts AG Appeals NRC Decision to Proceed with Hearings to Extend Pilgrim License

  • Massachusetts AG Martha Coakley is appealing the Nuclear Regulatory Commission’s (NRC) decision to proceed with hearings to grant a 20-year license extension to the Pilgrim Nuclear Power Plant in Massachusetts.
  • AG Coakley has opposed the relicensing since 2006 and more recently has argued that the 2011 disaster at Japan’s Fukushima Daiichi power plant demonstrates the need for additional review before the Pilgrim plant can be relicensed, a position rejected by the NRC.

Environment

Massachusetts AG Fines Landowner for Oil Spill

  • Massachusetts AG Martha Coakley announced $38,000 in fines levied against a landowner over alleged violations of state water pollution laws.
  • The owner will take steps to mitigate environmental risks posed by the property in question, which was formerly used for manufacturing and which the State alleges still sits on soil and groundwater contaminated by an earlier oil spill that has not been abated in accordance with state law.