State Attorneys General
Practice Overview
State attorneys general are taking an increasingly active role in pursuing investigations, enforcement matters, and litigation, often coordinating their actions and pooling resources to exert nationwide pressure on companies. They are also working in conjunction with federal enforcement agencies including the Department of Justice, Federal Communications Commission, Federal Trade Commission, and Consumer Financial Protection Bureau. Whether undertaken independently, in conjunction with other attorneys general or federal agencies, or in response to media reports, actions by state attorneys general can have long-lasting reputational and financial implications for companies and individuals.
Buckley attorneys understand that these matters can escalate quickly, and provide clients with comprehensive guidance in response to a state inquiry or enforcement action. We have represented businesses and individuals before all 51 state attorneys general in a range of industries, including financial services, hospitality, digital commerce, payments and data, cybersecurity, energy, healthcare, pharmaceuticals, telecommunications, insurance, and other consumer-centric businesses. Buckley attorneys also represent companies before state agencies, particularly banking commissioners.
Our knowledge of the law is informed by an understanding of the political and policy considerations that often influence attorney general decisions. We stay abreast of emerging issues in the state attorney general community and closely monitor trends and developments that may affect our clients. We anticipate challenges and design innovative strategies before difficulties can arise, and are efficient and creative problem-solvers when they do. We offer solutions that help our clients avoid costly investigations and litigation, as well as unwanted scrutiny. Where litigation is inevitable, our lawyers aggressively defend against claims, including multistate and federal enforcement investigations related to consumer protection, data privacy, advertising, consumer finance, and environmental and energy concerns, as well as state qui tam actions.
We have worked with financial institutions of all types, including banks, marketplace lenders, auto finance companies, student loan servicers, and mortgage companies, to respond to inquiries from state attorneys general, involving various aspects of their business practices including sales, advertising, servicing, collection, and licensing matters.
Select representations in this area include:
- Multiple international hotel companies in a confidential multistate attorneys general investigation
- A leading homebuilder, mortgage originator, and mortgage servicer in parallel investigations of various subsidiaries by a large multistate attorney general group, the CFPB, the DOJ, and the Department of Housing and Urban Development, among others
- Numerous financial institutions in investigations, examinations, and licensing matters before the New York Department of Financial Services
- Banks and nonbanks in civil litigation or enforcement proceedings brought by state agencies such as the California Department of Business Oversight arising from alleged violation of licensing laws
- One of the nation’s largest mortgage loan servicers and its affiliates before more than 30 state regulatory agencies and the CFPB in lawsuits and administrative actions alleging improper servicing practices
- Multiple indirect auto finance companies in DOJ and state AG investigations into subprime auto loan origination and securitization practices
- Top national tax-preparation companies in investigations and enforcement actions by state attorneys general and state taxation agencies regarding consumer advertising, tax preparation services, and tax refunds
- Innovative global automotive company to resolve a potential multimillion-dollar licensing issue with a state attorney general, resulting in no fine and no press release
- Verizon Wireless in a settlement with the CFPB, FCC, and 51 attorneys general alleging that it permitted third parties to place unauthorized charges on consumers’ wireless phone bills
Articles
"School of hard knocks: Federal student loan servicing and the looming federal student loan crisis" by Jeffrey P. Naimon, Sasha Leonhardt, and Sarah B. Meehan (American University Administrative Law Review)
Nearly forty-three million Americans collectively owe $1.5 trillion in outstanding student loan debt. Of that, approximately ten percent of student loan debt is over ninety days delinquent or in default, while the actual delinquency rate is estimated to likely be double this amount due to the fact...
Articles"Price-gouging a priority as pandemic persists"
One of the federal government’s most immediate responses to the coronavirus crisis was a highly visible campaign against profiteering. While the absence of an overarching federal anti-price gouging statute has forced prosecutors to improvise and legislators to contemplate new laws in order to...
Buckley Commentary & Analysis"Intra-franchise no-poach agreements: Recent developments and trends" by Adam Miller and Scott T. Sakiyama (Bloomberg Law)
Washington Attorney General Bob Ferguson has obtained binding settlement agreements from 23 prominent franchisors in the nine months since he announced an initiative to eliminate no-poach clauses nationwide, and he has already expanded beyond the fast-food industry. Scrutiny of the clauses, which...
Articles"The role of State AGs in solving student loan crisis" by Sasha Leonhardt (Law360)
State attorneys general are the chief legal officers of their state; state attorneys general are the chief law enforcement officers of their state; and state attorneys general must protect their citizens and vigorously enforce their state’s consumer protection statutes. As broad as these powers and...
ArticlesSpecial Alert: Mulvaney says the CFPB will depend heavily on state Attorneys General for enforcement of consumer protection laws
Mick Mulvaney, the acting director of the Consumer Financial Protection Bureau, in a February 28 speech, outlined the Bureau’s overall direction and strategic priorities, and described plans to coordinate with state Attorneys General in enforcing federal consumer financial protection law. Mulvaney...
Special AlertsTips for Fantasy Sports Cos. As State AGs Target Industry
Selecting the roster of your fantasy football team can be a maddening exercise. You could spend hours analyzing running backs’ carries per game, yards-per-carry averages, and weighing your pass protection concerns against injury risk. But, as they say, on any given Sunday anything can happen. Your...
ArticlesCongress Could Be Coming for Dietary Supplements
The next chapter in the saga of New York State Attorney General Eric T. Schneiderman's investigation of the dietary supplements industry may take place on Capitol Hill. On April 2, Schneiderman and the state attorneys general of Connecticut, the District of Columbia, Hawaii, Idaho, Indiana, Iowa,...
ArticlesRecent Enforcement Trends: State Attorneys General Target the Dietary Supplements Industry
Leslie Meredith authored, "Recent Enforcement Trends: State Attorneys General Target the Dietary Supplements Industry," which was published in NutraIngredients USA on April 9, 2015. Editor’s note: The recent actions of New York Attorney General Eric Schneiderman have changed the enforcement...
ArticlesSpecial Alert: Federal and State Officials Announce Mortgage Servicing Settlement
This morning, U.S. Attorney General Eric Holder, HUD Secretary Shaun Donovan, Iowa Attorney General Tom Miller, and several other state and federal officials jointly announced an approximately $25 billion agreement in principle between the federal government, 49 state attorneys general and the five...
ArticlesState Attorneys General Are the New Bank Regulators
Spurred by the financial crisis and its impact on their constituents, state attorneys general appear to be carving out a new role as de facto bank regulators. This trend, an unexpected fall out of the financial crisis and the passage of Dodd-Frank, may not as yet be fully appreciated. However, it...
Articles
News & Blogs
California AG advocates for medical payment reforms
California Attorney General Rob Bonta submitted a letter to federal agencies urging the federal government to adopt regulations and statutory protections to help protect patients who may need to use medical credit cards and installment loans to pay for healthcare-related bills. The letter notes...
InfoBytesCalifornia AG announces settlement with mortgage servicer
On September 1, California Attorney General (AG) Rob Bonta announced a settlement with a mortgage servicer for its alleged failure to properly process and grant mortgage deferment requests from California military reservists called to active duty. California’s Military and Veterans Code, which...
InfoBytesJudge stays CFPB, NY AG lawsuit against auto lender
On August 7, the U.S. District Court for the Southern District of New York granted a defendant’s motion to stay a lawsuit against an alleged predatory auto lender until the Supreme Court determines the constitutionality of the CFPB’s funding in a separate lawsuit (CFSA Case; covered by InfoBytes...
InfoBytesPayment processor fined $75k, partner owes $243M in CFPB suit
On July 31, the District Court for the Central District of California entered judgment in favor of the court-appointed receiver for defendants against the non-party provider of payment processing and escrow services to defendants and its managing member in the amount of $75,000, following a July 10...
InfoBytesCalifornia AG warns against unlawful employer-driven debt arrangements
On July 25, California Attorney General Rob Bonta issued a Legal Alert to remind all employers of state-law restrictions on employer-driven debt. Bonta highlighted concerns about employers engaging in exploitative practices that lead to employees accumulating debts as a result of their employment...
InfoBytesFeds, states launch “Operation Stop Scam Calls”
On July 18, the FTC, along with over 100 federal and state law enforcement partners nationwide, including the DOJ , FCC , and attorneys general from all 50 states and the District of Columbia, announced a new initiative to combat illegal telemarketing calls, including robocalls. The joint...
InfoBytesCalifornia probes employers’ CCPA compliance
On July 14, the California attorney general announced it recently sent inquiries to several large employers as part of an investigation into companies’ compliance with their legal obligations under the California Consumer Protection Act (CCPA). The investigation centers on how companies handle the...
InfoBytesCFPB, states sue company over deceptive student lending and collection
On July 13, the CFPB joined state attorneys general from Washington, Oregon, Delaware, Minnesota, Illinois, Wisconsin, Massachusetts, North Carolina, South Carolina, and Virginia in taking action against an education firm accused of engaging in deceptive marketing and unfair debt collection...
InfoBytesStates urge Supreme Court to find CFPB funding unconstitutional
On July 10, the West Virginia attorney general, along with 26 other states, filed an amicus brief in support of respondents in Consumer Financial Protection Bureau v. Community Financial Services Association of America , arguing that the CFPB’s funding structure violates the Constitution and that...
InfoBytesStates endorse CFPB’s policy statement on abusive conduct
On July 6, the California attorney announced that he had joined a coalition of state attorneys general in submitting a comment letter endorsing the CFPB’s recently issued policy statement on abusive conduct in consumer financial markets. The multi-state coalition comprises Arizona, California,...
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Recent Blog Posts
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September 22, 2023
California AG advocates for medical payment reforms
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September 8, 2023
California AG announces settlement with mortgage servicer
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August 11, 2023
Judge stays CFPB, NY AG lawsuit against auto lender
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August 3, 2023
Payment processor fined $75k, partner owes $243M in CFPB suit
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July 28, 2023
California AG warns against unlawful employer-driven debt arrangements