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. 

Six states—Alabama, Arizona, Florida, Indiana, Iowa and Mississippi—have passed “sunshine” legislation to create an open process of hiring outside contingency fee counsel. These measures 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.

 

 

Research

Enforcement Slush Funds: Funding Federal and State Agencies with Enforcement Proceeds

March 25, 2015 | This paper addresses the growing practice of federal law enforcement officials and state attorneys general using public money generated from litigation settlements for their own use or for their preferred projects and charities.

The ILR Research Review

December 18, 2014 | The second issue of 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.

All Results for State Attorneys General

In the News Today - April 2, 2015

April 02, 2015 | Insights

Alabama Attorney General Luther Strange has done an about-face on his 2010 statement that "private attorneys would not represent the State in litigation against BP," and has appointed two Alabama firms to sue the company on behalf of the state. (Legal Newsline) Read More »

Tags: State Attorneys General, Legal Ethics, Class Actions, Asbestos, New York, Alabama

ILR Commends New Arkansas AG Sunshine and Arizona Asbestos Claims Reform Laws

April 02, 2015 | Insights

ILR President Lisa A. Rickard yesterday released two statements praising both Arkansas and Arizona for their recent progress in reforming attorney general sunshine and asbestos claims laws in the respective states. Read More »

Tags: Asbestos, Class Actions, State Attorneys General, State Legal Reforms, State Tort Reform, Arizona, Arkansas

Enforcement Slush Funds: Funding Federal and State Agencies with Enforcement Proceeds

Author: John H. Beisner, Geoffrey M. Wyatt and Jordan M. Schwartz, Skadden, Arps, Slate, Meagher & Flom LLP Andrew J. Pincus and Sean P. McDonnell, Mayer Brown LLP | March 25, 2015 | Research

This paper addresses the growing practice of federal law enforcement officials and state attorneys general using public money generated from litigation settlements for their own use or for their preferred projects and charities. Read More »

Tags: State Attorneys General

In The News Today - March 4, 2015

March 04, 2015 | Insights

"Recent reports in the New York media paint the New York City Asbestos Litigation court and its former chief judge as essentially dirty," reports Legal Newsline," giving special treatment to a certain plaintiffs law firm and paving the way for hefty paydays." (Legal Newsline) Read More »

Tags: State Attorneys General, Class Actions, Asbestos, New York, Mississippi

Morgan Stanley Enters Settlement Talks with NY AG

March 04, 2015 | Insights

Reuters reports that Morgan Stanley has entered settlement talks with New York Attorney General Eric Schneiderman over its handling of subprime mortgage deals in the lead up to the 2008 financial crisis. Read More »

Tags: State Attorneys General, New York

AG Nominee Lynch Forced to Respond to ILR's FCPA Proposals

February 18, 2015 | Insights

In a written exchange with U.S. Senators, U.S. Attorney General nominee Loretta Lynch was forced to counter the views expressed by the now-chief of DoJ's Criminal Division's Fraud Section, Andrew Weissman, in a 2010 paper he authored for the U.S. Chamber Institute for Legal Reform. Read More »

Tags: State Attorneys General, Foreign Corrupt Practices Act

In The News Today - February 13, 2015

February 13, 2015 | Insights

Citing his "dissatisfaction with Lynch's written answers in response to committee members' posthearing questions," U.S. Senate Judiciary Committee Chairman Charles Grassley (R-IA) said that a confirmation vote on U.S. attorney general nominee Loretta Lynch will have to wait another two weeks. Read More »

Tags: State Attorneys General, Iowa

In The News Today - February 10, 2015

February 10, 2015 | Insights

Eleven state attorneys generals have lined up behind Mississippi AG Jim Hood in his probe of Google, putting them at odds with the company and the electronics industry. Read More »

Tags: Legal Ethics, State Attorneys General, State Legal Reforms, Mississippi, New York, West Virginia

Grand Jury to Recommend Charges of Perjury, Obstruction Against Pennsylvania AG

January 22, 2015 | Insights

Court records made public yesterday show that a grand jury has recommended charges of perjury and obstruction be brought against Pennsylvania Attorney General Kathleen Kane. Read More »

Tags: State Attorneys General, Pennsylvania

Pennsylvania AG To Face Criminal Charges, Says Philly Newspaper

January 09, 2015 | Insights

The Philadelphia Inquirer reports that a grand jury is recommending criminal charges against Pennsylvania Attorney General Kathleen Kane. Read More »

Tags: Legal Ethics, State Attorneys General, Pennsylvania

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