Google Play Store Targeted in Multistate Antitrust Suit

• A bipartisan group of 37 AGs, led by Utah AG Sean Reyes, New York AG Letitia James, North Carolina AG Josh Stein, and Tennessee AG Herbert Slatery, sued Google, LLC and related entities (collectively, “Google”) over allegations that it holds a monopoly over the distribution of apps for the Android operating system in violation of the Sherman Act and state antitrust and consumer protection laws.
• The complaint alleges that, among other things, Google uses exclusionary contracts to stop equipment manufacturers from developing their own app stores and to force them to preload its Google Play Store on all Android devices, and that it imposes onerous technical barriers to discourage or prevent third-party app developers from distributing their apps outside of the Google Play Store on Android devices. It also alleges that Google unlawfully ties the use of Google’s payment processor—a stand-alone service—to distribution through the Google Play Store and is thereby able to charge transaction processing fees of up to 30 percent of the transaction, which is far higher than processing fees charged in competitive markets.
• The complaint seeks injunctive relief, declaratory relief, treble damages, disgorgement, civil penalties, and attorneys’ fees and costs, among other things.

Colorado Repeals Ban on Credit Card Surcharges

• Colorado Governor Jared Polis signed into law a bipartisan bill repealing the state’s prohibition on credit card surcharges.
• Under the new law, Colorado businesses may impose a credit card processing surcharge of up to either 2% of the transaction amount or the actual processing fee paid by the merchant, and must disclose the surcharge to consumers through signage and on receipts.
• As previously reported, CardX, LLC, which lobbied for the new law and is represented by Bernie Nash and Keturah Taylor of the Cozen O’Connor State AG Group, previously obtained an AG opinion in Oklahoma declaring that its no-surcharge statute is unconstitutional and a federal judicial decision in Kansas declaring the same. With the Colorado legislature’s repeal of its no-surcharge statute, CardX has hit a trifecta by securing executive, judicial, and legislative wins.

Six-Alarm Fire in Chemical Plant Results in Environmental Suit

• Illinois AG Kwame Raoul sued chemical manufacturer Chemtool Inc. over allegations that a six-alarm fire in its chemical factory resulted in air and water pollution in violation of the Illinois Environmental Protection Act.
• The complaint alleges that containers storing over 4 million gallons of crude oil and petroleum products were compromised by the fire in Chemtool’s factory, resulting in significant air and water pollution; that the fire released toxic ash into the air that landed on buildings, land, and water; and that firefighting foam containing a “forever chemical” was found in the nearby Rock River after a pump failure, among other things.
• The complaint seeks declaratory and injunctive relief—including requiring Chemtool to contain and prevent further chemical discharges and runoffs—clean-up costs, civil penalties, and attorneys’ fees and costs, among other things.

Indiana Charter Schools Accused of Misappropriating Public Funds

• Indiana AG Todd Rokita sued virtual charter school operator Indiana Virtual Educational Foundation and related entities and individuals (collectively, “IVEF”) for misappropriating public funds under the theory of malfeasance, misfeasance, and/or nonfeasance, and under the Indiana Crime Victims Relief Act.
• The complaint alleges that IVEF received more than $68 million of public funds—including over $2 million in special education funds—by misrepresenting the number of students enrolled in and attending its charter schools; and wrongfully disbursed more than $85 million to IVEF-connected entities, including disbursing funds without invoices or with insufficiently detailed invoices. The schools’ charters have been revoked for a variety of reasons, including for allegedly failing to meet minimum academic standards and to comply with accounting and related provisions required by Indiana law.
• The complaint seeks treble damages, disgorgements, and attorneys’ fees and costs.

Republican Attorneys General Oppose Reinstatement of California’s Clean Air Act Waiver

• A group of 16 Republican AGs, led by Ohio AG Dave Yost, sent a comment letter to the U.S. Environmental Protection Agency (“EPA”) urging it to not reinstate California’s waiver under the Clean Air Act, which the letter argues is unconstitutional.
• In the letter, the AGs urge the EPA to maintain the Trump administration’s Safer Affordable Fuel-Efficient (“SAFE”) Vehicles Rule, which revoked the waiver previously granted to California under the Clean Air Act and established nation-wide emissions standards. The waiver, if reinstated, will allow California to set new car emissions standards that are more stringent than the federal government’s standards, which the AGs argue is unconstitutional because it violates equal-sovereignty principles requiring all states to be treated equally.
• The letter notes that the waiver is not a mere technicality and argues that it provides California with an advantage that it can wield to extract concessions from car manufacturers.

Airline Service Company to Pay for Minimum Wage and Overtime Violations and Reimburse Costs of Laundering Uniforms

• New York AG Letitia James reached a settlement with airline service company American Sales and Management Organization, LLC d/b/a/ Eulen America (“Eulen”) to resolve allegations that it underpaid its employees and failed to reimburse minimum-wage employees for work-related costs in violation of New York’s labor laws, including the Minimum Wage Act and the Miscellaneous Wage Order.
• According to the assurance of discontinuance, Eulen failed to pay employees the Port Authority Minimum Wage, which is applicable to its employees, did not pay overtime to employees who worked more than 40 hours in a week, and did not reimburse minimum-wage employees for the cost of laundering their uniforms.
• Under the terms of the assurance of discontinuance, Eulen will pay $590,000 in employee restitution, and will retain documentation of employee policies and forms and other documents related to Eulen’s employment practices for six years, among other things.