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On January 17, Pennsylvania Acting Attorney General Michelle Henry (R) succeeded AG Josh Shapiro who became the state’s 48th governor. Since 2017, Acting AG Henry served as former AG Shapiro’s first deputy — the first woman in that position — overseeing all legal, criminal, and civil matters in the AG’s office. Governor Shapiro now plans to nominate her as his “permanent” replacement to the Republican-controlled state Senate, so she can serve the remaining two years of his term as a full-fledged AG.

On January 18, North Carolina Attorney General Josh Stein (D) announced his bid for governor in a three-minute video to replace term-limited Democrat Roy Cooper. Since his announcement comes nearly two years (657 days) before the 2024 election, AG Stein likely hopes his early launch will dissuade other Democratic primary challengers. More than 150 elected officials in North Carolina, including 64 members of the state House and Senate, 16 mayors, and 28 district attorneys and sheriffs, endorsed AG Stein’s announcement. AG Stein garnered national attention by leading lawsuits against opioid manufacturers and by initiating efforts to end robocalls and robotexts.

In addition to a night of revelry, the 2023 new year will trigger the many new privacy mandates in the Virginia Consumer Data Protection Act (VCDPA) for businesses operating in Virginia — only the second state with active consumer privacy legislation behind California, with other states’ privacy laws, such as Colorado, Connecticut and Utah, taking effect later this year. Virginia Attorney General Miyares is no doubt eager to flex his new authority under the VCDPA, meaning companies that process, collect, or sell Virginians’ personal information should carefully read the VCDPA to ensure their compliance with the new law.

Before being elected to the U.S. Senate, now former Missouri Attorney General Eric Schmitt filed a lawsuit against Power Home Solar LLC — a North Carolina entity now doing business as Pink Energy — alleging that the solar company misrepresented the effectiveness and safety of its energy-generating systems for residential homes in violation of the Missouri Merchandising Practices Act. The lawsuit seeks injunctive relief and restitution in addition to civil penalties to remedy the alleged violations of Missouri consumers’ rights.

On January 10, Virginia Attorney General Jason Miyares detailed his 2023 General Assembly session priorities, supporting law enforcement, victim prioritization, and community safety. AG Miyares plans to accomplish his goals — “to crack down on organized retail crime, punish drug dealers peddling lethal fentanyl, support members of the Jewish Community, and protect Virginia consumers from policies designed for Californians” — through bipartisan collaboration with the General Assembly.

Published in Law360 on January 10, 2023. © Copyright 2022, Portfolio Media, Inc., publisher of Law360. Reprinted here with permission.

In late November, the New Mexico attorney general announced a lawsuit[1] in the Santa Fe County First Judicial District Court against Philip Morris USA Inc., R.J. Reynolds and other signatories to the tobacco master settlement agreement alleging their violation of the MSA and various state and common laws due to their withholding of payments to the state.

On January 5, New York Attorney General Letitia James sued Celsius founder and former CEO Alex Mashinsky for making repeated misrepresentations about the company’s financial products and asset holdings to investors. AG James describes the now bankrupt crypto-lending platform Celsius as “a cryptocurrency lending platform where investors could deposit their cryptocurrency in return for promises of high yields on those digital assets.”

Just before the new year, Maryland Attorney General Brian Frosh announced a $250,000 settlement with Caliber Homes, Inc. to resolve allegations that Caliber attempted to mislead approximately 220,000 consumers into thinking that its mailings actually came from the customers’ current mortgage companies by sending advertisements that displayed the name and mailing address of the consumers’ original mortgage company instead of Caliber’s. AG Frosh alleged that Caliber’s conduct violated Maryland law, which prohibits licensed lenders from advertising under any name or address that is not their own.

On December 29, 2022, Washington Attorney General Bob Ferguson sued Seattle-area plastic surgery provider Allure Esthetic and its owner for falsely inflating Allure’s online ratings in violation of HIPAA, the Washington State Consumer Protection Act, and the Consumer Review Fairness Act. Specifically, AG Ferguson alleged that Allure and its owner:

On December 27, the New Jersey Division of Consumer Affairs (the Division) entered a consent order with Yellowstone Capital LLC (Yellowstone) and several related companies to resolve allegations that, in violation of the New Jersey Consumer Fraud Act, the company engaged in abusive lending practices in connection with Merchant Cash Advances to small business owners (MCAs). Pursuant to the settlement, Yellowstone must forgive all outstanding balances for customers who entered MCAs, which is estimated to be approximately $21.7 million, and pay more than $5.6 million to the Division for purposes that may include, restitution, attorneys’ fees, costs of investigation and litigation and costs of administering restitution, and penalties up to $250,000. The order also imposes additional requirements regarding Yellowstone’s agreements and collections activity discussed below.