State AG Monitor

State AGs in the News

By Bernard Nash , Divonne Smoyer , and Ann-Marie Luciano on Posted in Antitrust, Consumer Protection, Pharmaceuticals

HOT NEWS

California Attorney General Speaks at Democratic National Convention

  • At the Democratic National Convention this week in Charlotte, North Carolina, California Attorney General Kamala Harris spoke both in her role as Co-Chair of the Rules Committee and as part of Wednesday’s prime-time lineup.

Antitrust

Nationwide Settlement Reached With E-Book Publishers Over Alleged E-Book Price Fixing Claims

  • Fifty-five Attorneys General reached a $69 million settlement with three major e-book publishers, Hachette Book Group (USA), HarperCollins Publishers LLC, and Simon & Schuster Inc. last week over allegations that the publishers conspired to fix the price of e-books.
  • Under the proposed settlement agreement, which is subject to court approval, Hachette, HarperCollins, and Simon & Schuster will compensate consumers who purchased e-books from those publishers, as well as Macmillian and Penguin, during the period of April 1, 2010 through May 21, 2012.

Three Attorneys General Settle Antitrust Claims with Online Retail Brokers Over Alleged Antitrust Violations

  • Connecticut Attorney General George Jepsen, Missouri Attorney General Chris Koster, and Iowa Attorney General Tom Miller announced that they have reached a settlement with E*Trade and TradeKing over allegations that the online brokers committed antitrust violations in the retail securities brokerage industry.
  • The settlement resolves an investigation into the alleged collusive conduct by several retail securities brokers and firms that assist the brokers in executing their orders on an exchange regarding the potential competition effects in the retail securities brokerage industry.
  • As part of the settlement, E*Trade and TradeKing agreed to create and implement an antitrust compliance policy and training program for employees, and to pay $200,000 to the states for reimbursement of investigation costs.

Consumer Protection

Maryland Attorney General Orders Homebuilder to Pay $837,024 in Damages Over Alleged Consumer Protection and Registration Violations

  • Maryland Attorney General Doug Gansler announced this week that his office has issued a final order against homebuilder Antoine Knott requiring the payment of a total of $837,024 in damages for alleged violations of Maryland’s Home Builder Registration Act, Custom Home Protection Act, and Consumer Protection Act.
  • The order is based on allegations that the homebuilder was not registered in Maryland but nevertheless entered into contracts to construct new homes, which he failed to complete, despite not returning consumers’ payments. The order issued by the Attorney General prohibits the homebuilder from acting as a homebuilder in Maryland until the registration requirements are satisfied.

Washington Attorney General Files Suit Against Furniture Store for Alleged Failure to Deliver

  • Washington Attorney General McKenna recently announced that his office has filed a lawsuit against brothers Loren and Joeseph Gill, owners of a furniture store, based on allegations that the store failed to deliver its products to consumers or offer refunds.
  • The lawsuit seeks civil penalties of $2,000 per violation, restitution to consumers, attorneys’ fees, as well as injunctive relief to permanently enjoin the brothers from engaging in illegal business practices.

Pharmaceuticals

36 States and DC Reach $181 Million Settlement with Johnson & Johnson Over Claims of Improper Marketing

  • Johnson & Johnson recently announced that it has reached a $181 million settlement with 36 States and the District of Columbia over allegations that the company’s subsidiary, Janssen, improperly marketed Rispersdal and Invega for unapproved off-label uses.
  • The settlement resolves claims that the company promoted Risperdal, an anti-psychotic medication, for unapproved uses such as dementia and obsessive compulsive disorder, and that it misrepresented the side effects and efficacy of Risperdal. The settlement is claimed to be the largest multistate consumer-protection-based pharmaceutical settlement in history.