State Attorneys General

For the past twenty years, state attorneys general have played an increasingly prominent role in enforcing laws and regulations affecting the business community.  While often appropriate, state AG enforcement can also lead to inconsistent, duplicative and politically motivated enforcement of key laws and regulations. In addition, many state AGs hire outside plaintiffs’ lawyers for these cases, raising questions about conflicts of interest and political favoritism. read more...

Modern state AG litigation began with the lawsuits filed against tobacco companies in the 1990s. These generated billions in state revenue, favorable publicity for state AGs and huge profits for certain plaintiffs’ firms hired by state AGs to conduct the litigation. 

The success of the tobacco litigation has led many AGs to target additional business sectors, particularly in the pharmaceutical and financial services areas. While some cases may be legally appropriate, other state AG actions appear more about enhancing a state AG’s political standing. In addition, businesses face the danger of inconsistent and duplicative enforcement by each of the fifty state AGs as well as numerous federal regulators. This is particularly true in the financial services context, where the Dodd-Frank law grants state AGs the power to enforce regulations issued by the new Consumer Financial Protection Bureau.

Also problematic is the use of outside contingency fee counsel by many state AGs. This involves state AGs awarding secret, no-bid contingency fee contracts to outside plaintiffs’ lawyers to represent their states in litigation.  As plaintiffs’ lawyers are awarded large contingency fees from successful lawsuits, money may be funneled back into campaign contributions to the AGs.  These alliances raise significant concerns about conflict of interest, favoritism, the use of a public entity for personal gain, and fairness in prosecutions. 

Twenty-one states—Alabama, Arizona, Arkansas, Colorado, Florida, Indiana, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Nevada, North Carolina, North Dakota, Ohio, Texas, Utah, Virginia, West Virginia and Wisconsin—have passed "sunshine" legislation to create an open process of hiring outside contingency fee counsel. These measures vary, but more recent laws require state attorneys general to disclose their contingency fee contracts, ensure that they maintain control of the litigation and impose reasonable limitations on fee awards to private attorneys. Other attorneys general have adopted office policies that implement many of these reforms. Companies are also fighting back against AGs hiring outside counsel in court. 

 

 

Research

The ILR Research Review-Volume 2,
Issue 2

December 22, 2015 | The ILR Research Review offers valuable insights from our preeminent experts and specialists on key topics addressed in the latest of ILR's research reports.

A Perilous Patchwork: Data Privacy and Civil Liability in the Era of the Data Breach

October 27, 2015 | This paper provides an overview of the patchwork of civil liability that U.S. companies face over data breaches, including actions by federal regulators, state attorneys general and private plaintiffs.

All Results for State Attorneys General

WV Governor Signs AG Outside Counsel Bill into Law

March 09, 2016 | Insights

West Virginia Gov. Earl Ray Tomblin signed a bill that will codify into law Attorney General Patrick Morrisey's outside counsel policy. Read More »

Trial Court Affirms Florida AG's Authority to Dismiss Meritless Whistleblower Case

March 09, 2016 | Insights

Florida Attorney General Pam Bondi dismissed a whistleblower case that had plaintiffs' lawyers' fingerprints all over it, and now a court has affirmed her authority to do so. Read More »

In the News Today - February 24, 2016

February 24, 2016 | Insights

FL Court Rules State AG Has Authority to Dismiss False Claims Act Suit: A Florida appeals court has ruled that the state's attorney general "has the authority to unilaterally dismiss a whistleblower suit against Motorola Inc., a decision that plaintiffs attorneys fear could open the door to having their clients' suits tossed for political reasons." The ruling affirms a lower court ruling that dismissed a former Motorola employee's False Claims Act suit at the request of the state attorney general's office. (Law360) Read More »

ILR Applauds WV Legislature for Passing AG Sunshine Legislation

February 11, 2016 | Insights

"We commend the West Virginia legislature for acting to reform the practice of awarding contingency fee contracts to outside plaintiffs' lawyers," "said ILR President Lisa A. Rickard in a statement applauding the West Virginia House and Senate for passing attorney general sunshine legislation. Read More »

In the News Today - February 2, 2016

February 02, 2016 | Insights

McGraw's Entry into WV Supreme Court Race a 'Bombshell': WV MetroNews reporter Hoppy Kercheval today calls former Attorney General Darrel McGraw's entry into the state Supreme Court race "the biggest bombshell of the last minute election filings." Noting McGraw would be 92 years old by the end of his term, Kercheval says the filing "is a curious, unexpected move, but then again, the McGraws have always marched to their own beat." (WV MetroNews) Read More »

In the News Today - January 21, 2016

January 21, 2016 | Insights

New Mexico AG Latest to File Suit Against Volkswagen: Volkswagen already faces more than 500 lawsuits from individuals and car dealers, as well as suits brought by the U.S. Justice Department and attorneys general in Texas and West Virginia, over the alleged emissions scandal. That, however, didn't stop New Mexico Attorney General Hector Balderas from also filing suit against the automaker yesterday. (Wall Street Journal) Read More »

In the News Today - January 7, 2016

January 07, 2016 | Insights

ACE Seeks Contempt Proceedings Against Litigation Financier: Irish developer Garrett Kelleher invested "$2.85 million in 2006 in the efforts of Liberian group Abi Jaoudi and Azar Trading (AJA) to enforce a $66.5 million judgment against US insurer Cigna Worldwide, in return for a share of the lawsuit's proceeds. The litigation ultimately failed, but ACE Group, which took over Cigna, will ask a U.S. court "to find Mr Kelleher along with two others, Martin Kenney and Samuel Lohman, in contempt of court for their role in the AJA case." (Irish Times) Read More »

The ILR Research Review-Volume 2,
Issue 2

December 22, 2015 | Research

The ILR Research Review offers valuable insights from our preeminent experts and specialists on key topics addressed in the latest of ILR's research reports. Read More »

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