State Attorneys General

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Last week, Arizona Attorney General (AG) Kris Mayes filed a lawsuit against FCA (formerly Fiat Chrysler) and Cummins for alleged violations of the Arizona Consumer Fraud Act by falsely advertising that certain vehicles were “clean diesel” vehicles, when in fact the vehicles allegedly had illegal emissions defeat devices. The lawsuit constitutes another example of the state of Arizona retaining outside counsel to take action against the automobile industry regarding the alleged use of emissions defeat devices.

In 2024, the landscape of state attorneys general (AGs) is poised for significant change, with numerous elections and regulatory actions reshaping priorities and enforcement strategies. This dynamic environment reflects the critical role AGs play in addressing key issues across various sectors, from environmental regulations and consumer protection to health care and privacy. As state AGs continue to influence policy and legal frameworks, their actions will have far-reaching implications for businesses and consumers alike. Troutman Pepper’s State AG team is pleased to provide you with this mid-year review summarizing the activities in this regulatory space over the past six months.

In an unusual move, attorneys general (AG) from 30 states and the District of Columbia filed a bipartisan amicus brief in the Ninth Circuit supporting efforts to revive a proposed class action against payment processor Shopify. The amici back plaintiff-appellant Brandon Briskin in his effort to convince the Ninth Circuit to overturn en banc a three-judge panel decision affirming the dismissal of his data privacy suit for lack of personal jurisdiction.

In late June, the U.S. District Court for the District of Montana held that federal law preempts the Montana Attorney General (AG) from removing the cigarette brands of Grand River Enterprises Six Nations, Ltd. (Grand River) from the state tobacco directory based on Grand River’s alleged violations of the Federal Food, Drug, and Cosmetics Act (FDCA). The FDCA preempts state law actions based solely on FDCA violations if the U.S. Food and Drug Administration (FDA) has not already found that such violations exist, the court explained.

Published in Law360 on July 16, 2024. © Copyright 2024, Portfolio Media, Inc., publisher of Law360. Reprinted here with permission.

Gone are the days when state attorneys general leave antitrust enforcement to their federal counterparts at the Federal Trade Commission or the U.S. Department of Justice Antitrust Division.

State attorneys general have become considerably more active in the antitrust space over the past several years, and there seems to be no sign of slowing down.

California Attorney General (AG) Rob Bonta announced a $50 million settlement with Vitol, Inc. (Vitol) and SK Energy Americas Inc. along with its parent company SK Trading International (collectively SK), to resolve a lawsuit involving allegations of antitrust violations and unfair competition in California’s gasoline market. The AG accused the companies of inflating gasoline prices after an oil refinery in Torrance, CA exploded in 2015.

BACKGROUND

The number of private equity (PE) funds and the amount of capital deployed through private equity investing have grown dramatically over the last several decades. Some PE firms are buyout firms — they purchase controlling equity positions in (usually privately held) operating companies — while other PE firms make minority investments, either alongside other PE firms or on their own. In both cases, PE firms are typically granted significant controls and protections by the companies in which they invest.

President Joe Biden announced his nomination of Ryan Y. Park, the solicitor general of North Carolina, for the Fourth Circuit Court of Appeals. This selection underscores the pivotal role that attorneys general (AGs) offices play in the legal landscape, not just as enforcers of state laws but also as training grounds for future judges who will bring their unique perspectives to the bench.

California Attorney General (AG) Rob Bonta and Los Angeles City Attorney Hyde Feldstein Soto recently settled a lawsuit with Tilting Point Media, LLC (Tilting Point) related to a SpongeBob Square Pants-themed app. In the complaint, Tilting Point is accused of collecting, using, and sharing the personal information of children in violation of the Children’s Online Privacy Protection Act (COPPA).