In this crossover episode of The Consumer Finance Podcast and Regulatory Oversight, Chris Willis, Kim Phan, and Stephen Piepgrass provide insights on a new joint privacy task force among several state AGs, known as the Consortium of Privacy Regulators. The consortium recently outlined goals to share state resources and align enforcement priorities regarding consumer harm and privacy rights. In response to an anticipated shift of regulatory scrutiny from federal agencies to state leaders, this episode focuses on specific steps financial services companies should consider when dealing with consumer privacy, data, complaints, and inquiries to ensure compliance and mitigate potential investigations and enforcement actions.

Published in Law360 on May 23, 2025. © Copyright 2025, Portfolio Media, Inc., publisher of Law360. Reprinted here with permission.

In the rapidly evolving landscape of Colorado’s cannabis industry, maintaining compliance with state regulation is not just a legal obligation but a critical component of business strategy. As cannabis products undergo rigorous testing, the potential of product contamination looms large, posing significant challenges for licensees.

On May 19, 2025, the U.S. Department of Justice (DOJ) announced the launch of a Civil Rights Fraud Initiative, which will use the False Claims Act (FCA) as a basis for investigating the diversity, equity, and inclusion (DEI) practices of recipients of federal funds, including colleges and universities who receive Title IV student financial aid and research grants. Calling out academic institutions specifically, the Civil Rights Fraud Initiative will invoke the FCA “against those who defraud the United States by taking its money while knowingly violating civil rights laws.”

Compliance Services Colorado, Inc. (CSC) and Colorado Compliance Services, LLC (CCS) (collectively, the parties) recently entered into an Assurance of Discontinuance (AOD) with Colorado Attorney General (AG) Phil Weiser to resolve allegations that, beginning in August 2023, CSC sent deceptive solicitations to businesses in violation of the Colorado Consumer Protection Act.

On May 9, Connecticut Attorney General (AG) William Tong, in collaboration with the U.S. Attorney’s Office for the District of Connecticut, announced a $495,721 false claims settlement with Advanced Dental Center PC (Advanced Dental) and its owners, Tal Yossefi and Elad Yossefi. The settlement resolves allegations that the business violated both state and federal False Claims Act (FCA) statutes by receiving so-called “recruiting fees” for each Connecticut Medicaid patient referred to the business. No liability was admitted as part of the settlement.

On May 8, the Treasury Department announced a plan to introduce a new Known Investor portal as a key component of the “fast-track” process for investments by U.S. allies and partners under review by the Committee on Foreign Investment in the United States (CFIUS). This plan was previewed in the America First Investment Policy Memorandum, discussed in more detail here.

On May 13, New Jersey Attorney General (AG) Matthew Platkin announced a proposed $450 million settlement agreement with 3M regarding allegations that, among other issues, contamination of perfluoroalkyl and polyfluoroalkyl substances (PFAS) emanated from a site now owned by 3M. The settlement resolves these claims and New Jersey’s broader claims that the state and its agencies have or may have in the future regarding PFAS. The settlement agreement remains subject to court approval.

On May 12, 2025, the Head of the Criminal Division (the Criminal Division or Division) at the Department of Justice (DOJ), Matthew R. Galeotti, issued key memoranda to Criminal Division personnel on the Division’s new priorities and policies for prosecuting corporate and white-collar crimes and for the imposition of monitorships. On the same day, the Criminal Division also issued a revised Corporate Enforcement and Voluntary Self-Disclosure Policy and long-awaited updates to the Corporate Whistleblower Awards Pilot Program. As expected, the Criminal Division’s position is consistent with prior memoranda issued by U.S. Attorney General (AG) Pam Bondi and the new Administration, which we previously discussed here.