The State AG Report – 2.9.2023

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AG James Settles over Sale of Unlawful Monitoring Software

New York AG Letitia James settled with Powerline Group Inc., fifteen related entities, and their owner over allegations that Powerline violated New York laws by promoting and selling software products designed to enable a user to monitor activity on another individual’s mobile device, also known as “spyware” or “stalkerware.”
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FTC Orders ZyCal to Cease Unsubstantiated Claims Regarding Bone and Joint Health Products

The FTC issued an order resolving allegations that ZyCal Bioceuticals Healthcare Company, Inc. and the company’s president (together, “ZyCal”) engaged in deceptive acts or practices that violated the FTC Act in the marketing and selling of products containing the ingredient Cyplexinol.
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Online Pharmacy Start-up Settles with AG Bonta for $15 Million over Alleged Medi-Cal Fraud

California AG Rob Bonta settled with Hey Favor, Inc. and affiliated and predecessor entities that previously conducted business as “The Pill Club” for allegedly violating the California False Claims Act by knowingly presenting false claims to Medi-Cal—California’s Medicaid program—for prescriptions that were written and dispensed in a manner that failed to comply with California law.
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Magellan Terminals Holdings to Pay $600,000 in Settlement over Texas Clean Air Act Allegations

Texas AG Ken Paxton settled with Magellan Terminals Holdings, L.P. over allegations that the company violated the Texas Clean Air Act through conduct that resulted in a large fire at its bulk petroleum terminal in Corpus Christi, Texas.
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Centene to Pay Indiana $66.5 Million in Latest Medicaid Overbilling Settlement

Indiana AG Todd Rokita reached a settlement with pharmacy benefit manager (PBM) Centene Corporation and its subsidiaries (collectively, “Centene”) in connection with alleged overcharges by Centene to Indiana’s Medicaid program for pharmaceutical costs.
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Republican AGs Criticize Yelp’s Policy on Crisis Pregnancy Centers

24 Republican AGs, led by Kentucky AG Daniel Cameron, sent a letter to Yelp, Inc. in opposition to the company’s recently announced policy of issuing “Consumer Notices” on the pages of crisis pregnancy centers on Yelp’s website and app, which notify readers that crisis pregnancy centers typically provide limited medical services and may not have licensed medical professionals onsite.
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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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