The State AG Report Weekly Update May 11, 2017


Missouri Attorney General Files Lawsuit Against Charity Over Alleged Misuse of Donations

  • Missouri AG Josh Hawley filed a lawsuit against Missouri charity Gold Star College Kids Foundation and its founder (collectively “Gold Star”) over allegations that Gold Star solicited $122,000 in donations without providing a single scholarship.
  • According to the AG’s office, Gold Star allegedly solicited donations for scholarships for children whose military family members had been killed in action, but instead used the donated funds on personal and business expenses.

Consumer Protection

New York Attorney General Reaches Agreement with Apartment Rental Company Over Alleged Illegal Lease Terms Targeting Service Members

  • New York AG Eric Schneiderman reached an agreement with property management company LeRay 300, LLC (“LeRay”) over allegations that the company’s lease terms violated the federal Servicemembers Civil Relief Act (“SCRA”) and state law.
  • According to the AG’s office, LeRay allegedly required service members to pay unlawful “lease processing fees” for early lease terminations when the service members were deployed or received orders, required service members to agree to unconscionable lease provisions, and engaged in other allegedly illegal rental practices, such as restrictions on occupancy limits, unlawful evictions, and inadequate disclosures of reservation deposits.
  • Under the terms of the agreement, LeRay will provide $59,000 in restitution to affected service members, pay $10,000 in civil penalties, and change its business practices to comply with state law.

Pennsylvania Attorney General Files Lawsuit Against Engine Sale and Repair Business for Allegedly Failing to Deliver Services

  • Pennsylvania AG Josh Shapiro filed a lawsuit against small-engine sale and repair shop Robert’s Motor Mart (“Robert’s”) for allegedly failing to provide promised repair and return services to consumers in violation of the state’s consumer protection law.
  • According to the AG’s office, Robert’s allegedly failed to provide advertised repair services on lawn mowers, pressure washers, and other items, in some instances failed to return the equipment, and failed to register with the Pennsylvania Department of State.
  • The lawsuit seeks restitution for affected consumers, civil penalties, and injunctive relief.


Illinois Attorney General Sues Metal Finishing Company Over Allegations of Improper Storage of Hazardous Waste

  • Illinois AG Lisa Madigan filed a lawsuit against metal finishing company Krel Laboratories Inc. (“Krel”) for allegedly failing to properly store hazardous materials in violation of state environmental law.
  • According to the AG’s office, Krel allegedly improperly stored large quantities of hazardous waste, including nitric acids, potassium, sodium cyanide, and other chemicals, in waste containers that were often leaking, in poor condition, or without proper labelling.
  • The lawsuit seeks an order for Krel to immediately cease operations and to hire an environmental consultant to conduct a thorough inventory of all chemicals at the facility, among other things.

New York Attorney General, DOJ, and EPA Reach Settlement with Manufacturing Company Over Alleged Hazardous Waste Violations

  • New York AG Eric Schneiderman, the Department of Justice, the Environmental Protection Agency, and state environmental agencies reached a settlement with manufacturing company Momentive Performance Materials Silicones, LLC (“MPM”) to resolve allegations that the company illegally disposed of hazardous wastes in violation of state and federal environmental laws.
  • According to the AG’s office, MPM allegedly circumvented the Clean Air Act and Resource Conservation and Recovery Act regulations when it allegedly triggered a manual override on its automatic waste feed cutoff system for certain incinerators, which allowed the incinerators to burn excessive amounts of hazardous waste and potentially exposed the public to harmful hazardous air pollutants.
  • Under the terms of the settlement, MPM must pay $1.25 million in civil penalties.

Health Care

FTC Settles with Opiate Detox Company for Allegedly Marketing Products with Unsupported Claims

  • The Federal Trade Commission (“FTC”) reached a settlement with marketer Catlin Enterprises, Inc. and its owner (collectively “Catlin”) over allegations that it unlawfully marketed two opiate detoxification products in violation of the FTC Act.
  • According to the FTC’s complaint, Catlin allegedly made unsubstantiated and deceptive claims that its “Withdrawal Ease” and “Recovery Ease” products alleviated symptoms of opiate withdrawal and increased the likelihood of overcoming dependency.
  • Under the terms of the stipulated final judgement, Catlin is prohibited from making misleading and unsubstantiated health claims regarding its products and is subject to a $6.6 million suspended judgment.