Private equity firms can breathe a sigh of relief after a federal judge dismissed claims that threatened to establish a precedent for holding private equity firms liable for certain actions by their portfolio companies.
Colorado Enacts Groundbreaking Artificial Intelligence Act
On May 17, 2024, Colorado Governor Jared Polis signed into law Senate Bill 24-205, the Colorado Artificial Intelligence (AI) Act, making Colorado the first U.S. state to enact comprehensive legislation regulating the use and development of AI systems. The act is designed to regulate the private-sector use of AI systems, particularly addressing the risk of algorithmic discrimination arising from the use of so-called “high-risk AI systems.” The law will take effect on February 1, 2026, and the Colorado attorney general (AG) has exclusive enforcement authority.
North Carolina Attorney General Reaches $500,000 Settlement in False Claims Act Lawsuit Against Health Care Providers
North Carolina Attorney General Josh Stein and the U.S. Attorney’s Office for the Middle District of North Carolina have reached a $500,000 settlement with Sharon Raynes Halliday and RAPHA Healthcare Services LLC, resolving a false claims lawsuit filed in July 2022 related to requests for payment submitted to the North Carolina Medicaid program.
FTC Noncompete Rule Risks a Wave of State AG Actions
Published in Law360 on May 23, 2024. © Copyright 2024, Portfolio Media, Inc., publisher of Law360. Reprinted here with permission.
On April 23, the FTC promulgated its final rule[1] banning noncompetes nationwide.[2]
While most commentary has focused on the scrutiny noncompetes would now garner at the federal level, few discussed the waterfall enforcement effect at the state level that would follow as state attorneys general could deploy their broad authority under state unfair or deceptive acts or practices, or UDAP, laws to treat noncompetes as separate and independent violations.[3]
Connecticut Attorney General Continues to Target Unlicensed and Unregulated Cannabis Sales
Last week the office of the Attorney General of Connecticut announced that the state had reached a settlement with HighBazaar over allegations that the organization allowed the unlicensed sale of cannabis, and the presence of minors, at their outdoor social cannabis events in Connecticut. The settlement represents one of many enforcement actions aimed at eliminating the state’s gray market and protecting licensed businesses and consumers.
States Sue the EPA Over New Emissions Rule
A coalition of Republican attorneys general representing 24 states has sued the Environmental Protection Agency (EPA) to block a new rule issued by the Biden-Harris administration as part of a suite of standards promulgated to reduce pollution from fossil fuel-fired power plants.
Nebraska Attorney General Leads Multistate Coalitions to Challenge Electric Truck Mandates
Nebraska Attorney General (AG) Mike Hilgers is leading multistate coalitions in two lawsuits aimed at challenging the Biden administration and the State of California’s electric vehicle mandates on truck owners and operators nationwide. The lawsuits argue that these mandates exceed the constitutional and statutory authority of the federal government and California regulators.
Connecticut AG Adds Independent Enforcement Authority for Dodd-Frank Actions
A new Connecticut law expands the authority of the state’s attorney general to enforce certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act).[1]
AGs Focus on AI Has Implications for Private Equity Investors
State attorneys general (AGs) have increased their scrutiny of the use of artificial intelligence (AI), particularly in relation to data privacy laws, consumer protection statutes, and anti-discrimination laws. Our state AG team has issued a new white paper examining this trend, including a detailed look at the recent advisory opinion issued by the Massachusetts AG’s office, which provides guidance on how existing laws apply to AI. Understanding the potential legal implications of AI use is important to any consumer-facing business, include private equity firms and other investors.
When Worlds Collide: State AG-Led Tort Claims Meet Government Contractor Defense
A state attorney general (AG) and a major American corporation recently battled over the scope and applicability of the government contractor defense.
The case is about per- and polyfluoroalkyl substances (PFAS) chemicals. These fluorine-related chemicals are used in a variety of products, including waterproof clothing, nonstick cookware, furniture, and food packaging. Opponents of PFAS refer to them as “forever chemicals” because, as they argue, PFAS compounds do not break down naturally and can contaminate the soil and drinking water.