News & Analysis as of

Restitution Unfair or Deceptive Trade Practices

Orrick, Herrington & Sutcliffe LLP

Attorneys general urge CFPB to pay consumer restitution

On May 6, the attorneys general from 11 states and the California DFPI urged the CFPB to prioritize the distribution of $4.2 million in consumer restitution, following a bankruptcy court judgment against a company for UDAP...more

Orrick, Herrington & Sutcliffe LLP

Ninth Circuit denies rehearing of lending company’s restitution challenge

On April 24, the U.S. Court of Appeals for the Ninth Circuit denied a loan company’s petition for rehearing and or rehearing en banc. The lender contested that the $134 million legal restitution it was mandated to pay to the...more

Cozen O'Connor

Minnesota AG Secures Order Against Tax Debt Settlement Company

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Minnesota Attorney General Keith Ellison has secured a court order against Wall & Associates, Inc., and associated individuals (collectively “Wall”) for their involvement in an alleged tax debt settlement scheme in violation...more

Troutman Pepper Locke

Massachusetts Federal Court Orders Key Credit Repair to Pay $50M for Misleading Claims and Advance Fees

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The U.S. District Court for the District of Massachusetts recently denied a credit repair organization’s motion for partial summary judgment and granted the Consumer Financial Protection Bureau (CFPB or Bureau) and the...more

Troutman Pepper Locke

New York AG Sues Yellowstone Capital Over Alleged “Fraudulent Loans” Targeting Small Businesses

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New York Attorney General (AG) Letitia James filed a lawsuit on March 5 against Yellowstone Capital, its founder David Glass, and a network of 30 other affiliated companies and individuals. James alleges that Yellowstone...more

Cozen O'Connor

AGs in Solar-darity in Fight Against Allegedly Deceptive Solar Panel Sales Practices

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Florida AG Ashley Moody brought lawsuits against two solar energy companies, SetUp My Solar, Inc. and Vision Solar FL, LLC, and related individuals for allegedly violating the state’s consumer protection law and home...more

Cozen O'Connor

Alleged Deceptive Conduct Sparks Illinois Suit Against Residents Energy

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Illinois AG Kwame Raoul filed a lawsuit against Residents Energy, LLC, alleging that the alternative retail electric supplier violated the Illinois Consumer Fraud and Deceptive Business Practices Act, as well as the Illinois...more

Cozen O'Connor

Don’t Lien on Me: Home Improvement Business Pays for Deceptive Practices

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An Ohio court entered a final judgment in a case brought by AG Dave Yost against Neil Construction Co., Inc. and its owner for allegedly defrauding customers in violation of state consumer protection laws....more

Sheppard Mullin Richter & Hampton LLP

FTC Captures $2.7 Million in Restitution from Small Business Financer

On June 2, the FTC was granted a federal court order permanently barring a merchant cash advance operation and its owner from engaging in further deceptive practices and granting restitution to the customers the company...more

Goodwin

North Carolina AG Permanently Enjoins Debt Settlement Business

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On May 26, 2022, the North Carolina Attorney General (NC AG) announced that it obtained a default judgment against a California-based debt settlement business, and its proprietor. The lawsuit, filed on June 25, 2021 in the...more

Cozen O'Connor

Minnesota AG Ellison Sues Solar Panel Company for Deceptive Sales Tactics

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Minnesota AG Keith Ellison has filed a lawsuit against four Utah-based solar panel sales companies, Brio Energy LLC, Bello Solar Energy, Avolta Power, Inc., and Sunny Solar Utah LLC, along with their executives and several...more

Cozen O'Connor

Student Loan Servicer Agrees to Cancel $1.7 Billion of Subprime Student Debt, Pay $95 Million in Restitution over Allegations of...

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A bipartisan group of 40 AGs, led by California, Illinois, Massachusetts, Pennsylvania, and Washington, reached a settlement with student loan servicer Navient Corporation and related entities (collectively, “Navient”) to...more

Venable LLP

“Are You Guys Into Crypto????”: Celebrities Promoting Cryptocurrencies Become Class Action Targets

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A class action lawsuit filed against Kim Kardashian, Floyd Mayweather, and former professional basketball player Paul Pierce earlier this month underscores the need for celebrity endorsers to take care when they approach any...more

Zelle  LLP

Minn. Big Oil Climate Suit Follows Big Tobacco Blueprint

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When Minnesota's Attorney General Keith Ellison announced in June 2020 that his office had filed a climate change lawsuit, the litigation strategy he described was relatively novel for a climate change case. Rather than...more

Lowenstein Sandler LLP

New York’s Highest Court Says D&O Insurers Must Cover Disgorgement Payments

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On November 23, 2021, New York’s highest court resolved a long-standing dispute between directors and officers (D&O) liability insurers and their insureds, holding that a settlement payment to the U.S. Securities and Exchange...more

Proskauer - Minding Your Business

Without Equitable Monetary Relief, No Need for Asset Freeze or Receivership to Preserve Resources, and More Takeaways from the...

The Eleventh Circuit’s opinion last month in FTC v. On Point Capital Partners LLC, et al.,clarifies the ramifications of the Supreme Court’s ruling in AMG Capital Management regarding the prohibition of equitable monetary...more

Cozen O'Connor

Influencer or Scammer? Instagram Celebrity Accused of Not Delivering Paid-for Services

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Pennsylvania AG Josh Shapiro sued Instagram influencer Casey Olivera, a/k/a Dana Chanel, related individuals, and companies owned and operated by Chanel over allegations that Chanel misled consumers about goods and services...more

Cozen O'Connor

Florida Attorney General And FTC Partner In Settlement Against Company Targeting Prisoners

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Florida AG Ashley Moody and the Federal Trade Commission (“FTC”) reached a settlement with the operator of magazine subscription service Inmate Magazine Service, Inc. and related entities (collectively “Inmate Magazine...more

Cozen O'Connor

Water Cure: Florida Company Sued Over False Marketing Claims Relating To Health Benefits Of Hydrogen-Enriched Water

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Florida AG Ashley Moody sued drinking-water system marketer Wellness Program Services, LLC d/b/a Trusii and related entities and individuals (collectively “Trusii”) over allegations that it used false and misleading health...more

CDF Labor Law LLP

Restitution Under the UCL Is Not Damages

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California Plaintiffs frequently assert a duplicative claim under the Unfair Competition Law (“UCL”), California Business & Professions Code Section 17200 et seq. that relies on a violation of another law to establish...more

Cozen O'Connor

Priorities And Trends Discussed At This Week’s NAAG Consumer Protection Spring Conference

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On May 11, 2021, the National Association of Attorneys General (NAAG) held its Spring Consumer Protection Conference virtually with more than 500 attendees. The conference comprised a series of panel discussions with state...more

Skadden, Arps, Slate, Meagher & Flom LLP

Supreme Court Curbs FTC’s Authority To Seek Monetary Relief in Federal Court — At Least Temporarily

Last week, the U.S. Supreme Court decided unanimously in AMG Capital Management, LLC v. FTC that Section 13(b) of the Federal Trade Commission Act of 1914 (FTC Act) does not authorize the Federal Trade Commission (FTC) to...more

Ballard Spahr LLP

SCOTUS rules FTC Act Section 13(b) does not authorize FTC to seek restitution or disgorgement

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In a unanimous decision, the U. S. Supreme Court ruled today that Section 13(b) of the Federal Trade Commission Act (Act) does not authorize the FTC to seek, and a court to award, monetary relief such as restitution or...more

Goodwin

Virginia AG Settles with Student Debt Relief Company

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On March 3, Virginia’s Attorney General announced that the state reached a settlement with a student debt relief company for alleged Virginia Consumer Protection Act (VCPA) violations. The simultaneously filed complaint...more

Rothwell, Figg, Ernst & Manbeck, P.C.

Supreme Court: The FTC – The Chief Federal Agency on Privacy Policy and Enforcement Since the 1970s – May Not Have Ever Had...

While Europe is leveraging hefty fines against violators of the EU General Data Protection Regulation (GDPR), the United States Supreme Court heard oral arguments last month on whether the FTC – the chief federal agency on...more

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