Category: US State of California

Source: US State of California

Represents first public action by Attorney General’s office enforcing Tenant Protection Act, brings financial relief to impacted individuals

SAN FRANCISCO – California Attorney General Rob Bonta today announced a settlement against Green Valley Corporation, a San Jose-based housing developer and property manager also known as Swenson Builders, to resolve allegations that the company violated the California Tenant Protection Act (TPA) by issuing unlawful rent increases to nearly 20 of its employee tenants and serving unlawful eviction notices to six of those employee tenants. Co-authored by Attorney General Bonta during his time as a state assemblymember, the TPA was signed into law by Governor Gavin Newsom in 2019. It created significant new protections for most tenants, including limiting rent increases and prohibiting landlords from evicting tenants without just cause. As part of the settlement, Green Valley will pay a total of $391,130 and be required to take specific actions to ensure compliance with the TPA.

“I co-authored the Tenant Protection Act during my time as an assemblymember because of the urgency of California’s housing crisis. As Attorney General, I still feel that same sense of urgency, making today especially meaningful,” said Attorney General Bonta. “Today’s settlement represents the first public action by the California Department of Justice in which it is enforcing the Tenant Protection Act. Because of that critical legislation, impacted Green Valley employee tenants are getting financial relief. In addition, they are being protected from skyrocketing rent increases and evictions without just cause, including pretextual evictions that do not meet the Act’s requirements. There should be no doubt: Tenants have housing rights in California, and we have your back.”
 
While Green Valley rents most of its properties to tenants with no employment affiliation with it, it also has some employee tenants, for whom it was keeping rents well below market rates. However, after receiving credible complaints in late 2021 about employee-tenant rent increases, the California Attorney General’s Office launched an investigation into Green Valley. The investigation revealed that Green Valley’s rent increases violated the TPA’s rent-increase cap for nearly 20 employee tenants, whose rents were increased by an average of 151%, and that Green Valley sent eviction notices to six of those employee tenants that failed to meet the TPA’s requirements for just cause evictions. 
  
Under today’s settlement, Green Valley:

• Must pay $391,130, comprised of $60,000 in penalties and $331,130 in restitution to 17 employee tenants who were impacted by its acts. Specifically, Green Valley is refunding 15 months of overpaid rent to the employee tenants who paid the unlawful increases. For the employee tenants who moved out due to the rent increases or eviction notices, Green Valley will pay 15 months’ worth of the difference between their lawful rent amounts and the estimated fair market value of the new units to which they relocated.
• Has already restored, as a result of this investigation, lawful rental rates for the three employee tenants who paid the unlawful rent increases and continue to rent from Green Valley;
• Cannot retaliate against its employee tenants;
• Must provide annual trainings, for the next five years, to relevant staff about landlord-tenant and fair housing laws as well as provide annual reports to the California Attorney General’s office regarding those trainings as well as regarding any rent increases and eviction notices to any employee tenants;
• Must fully comply with the TPA and other California tenant protection laws; and  
• Must provide its employee tenants with the same rights and protections granted to other tenants, such as those provided by the TPA. 

Employee tenants — individuals who both work for and have residential leases with a company — are not exempted from coverage under the TPA. The TPA prohibits landlords from raising rent more than 10% total or 5% plus the percentage change in the cost of living, whichever is lower, over a 12-month period. It also requires landlords to have just cause for eviction and specifies what constitutes a just cause. For example, a landlord may evict a tenant if they intend to substantially remodel the property. However, substantial remodel requires the replacement or substantial modification of structural, electrical, plumbing, or mechanical systems that requires a government permit, or the abatement of hazardous materials, that cannot reasonably be accomplished safely with the tenant in place and requires the tenant to vacate the unit for 30 or more days. A landlord should therefore be able to show that they obtained estimates from licensed contractors about the scope and duration of work, that they obtained permits for the work, and that the work could not be performed safely and diligently without requiring the tenant to vacate for at least 30 days.
 
Attorney General Bonta remains committed to upholding protections for California renters. In May 2023, he filed a lawsuit against the City of Elk Grove, challenging the city’s denial of a proposed supportive housing project in the city’s Old Town Special Planning Area. In March 2023, he filed a lawsuit against the City of Huntington Beach for violating state housing laws. In July 2022, he issued legal guidance about steps law enforcement officers should take to prevent and respond to unlawful lockouts and self-help evictions. In April 2022, he issued a consumer alert reminding California’s tenants of their rights and protections under state law. In November 2021, he announced the creation of a Housing Strike Force — now called the Housing Justice Team — within the California Department of Justice.
 
Members of the public are encouraged to visit the California Department of Justice’s Housing Portal and HCD’s website for more resources and information aimed at supporting access to housing. If you believe your landlord has violated the law, you can file a report online at www.oag.ca.gov/report. Tenants who need legal help are encouraged to vvisit  www.lawhelpca.org to find legal aid resources in their communities.
 
A copy of the complaint and proposed judgment, which details the aforementioned settlement terms and remains subject to court approval, can be found here and here.

Source: US State of California

Today’s record request is part of an ongoing law enforcement investigation into the transport of 36 asylum seekers to California

SACRAMENTO – In a crucial move to unearth the circumstances under which 36 migrants were recently transported to California, Attorney General Rob Bonta today issued a public records request to the Office of Florida Governor Ron DeSantis and the Florida Division of Emergency Management. These inquiries are part of an ongoing law enforcement investigation into the conditions under which the migrants seeking asylum were brought into California pursuant to Florida’s so-called “Voluntary Migrant Transport Program.”

 “Upon meeting with the asylum seekers who had been flown to Sacramento via private plane, without any prior arrangements or immediate care provision, we understood the urgent need for a thorough investigation,” said Attorney General Bonta. “These letters represent our commitment to transparency and justice. We need to understand the circumstances that led to the implementation of this operation – which was apparently paid for by Florida taxpayer dollars – and the decisions and directives that led to this questionable act. The information gathered will be crucial in determining whether the law has been violated and, if so, what subsequent steps are required to prevent such disregard for human rights from recurring.”

 On June 2, and June 5, two separate groups of asylum seekers were transported from Texas to New Mexico, and then flown to Sacramento, California. Those who arrived on June 2 were left at the door of the Catholic diocese in Sacramento. These individuals were in possession of documentation purporting to be from the government of the State of Florida and its “Voluntary Migrant Transport Program,” which contracted with Vertol Systems Company, Inc., to carry out the transport. The California Department of Justice (DOJ) swiftly launched an investigation into the circumstances by which these individuals were brought to California, who funded their travel, and whether these individuals were given false information –– especially as many of the asylum seekers already had immigration proceedings underway. The DOJ investigation seeks to determine whether potential criminal and civil action is warranted. 

Today, Attorney General Bonta has dispatched the two letters formally seeking records under Chapter 119 of the Florida Statutes, a law that ensures public access to governmental records, with the intention of shedding light on the operations and decision-making processes that culminated in these migrant transports.

Specifically, the requests focus on:

• Communications between the Florida Governor’s office or the Florida Division of Emergency Management and any private entity involved in the migrant transports.
• Any instructions or orders given by these offices to any private entity involved in the transports.
• Communications between these offices and any migrant related to the transportation to California.
• Communications between these offices and the Florida Department of Transportation regarding these transports.
• Any records related to the transportation of migrants into California, including those that originated in El Paso, TX, and arrived in Sacramento, CA on June 2, 2023, and June 5, 2023.
• Unredacted versions of all bids or proposals submitted in response to Request for Proposal No. RFP-DEM-22-23-028, including communications and contracts related to the said proposal.
• Communications and any instructions or orders provided by these offices to entities involved in the transportation, including but not limited to Vertol Systems Company, Inc., and Berry Aviation.

The California Department of Justice will utilize the obtained records to aid the ongoing investigations. Meanwhile, California remains steadfast in offering dignified treatment to migrants. Attorney General Bonta is committed to upholding justice and the rights of all individuals within California’s jurisdiction.

A copy of the letters sent to the Governor of Florida and Florida Department of Emergency Management can be found here and here.                                               

Source: US State of California

Today’s commitment by CVS, Walgreens, Teva, and Allergan is an important milestone in California’s efforts to address the opioid epidemic

OAKLAND — California Attorney General Rob Bonta announced four multi-billion opioid settlements with pharmacies CVS and Walgreens and manufacturers Allergan and Teva are moving forward. The settlements are together worth up to $17.3 billion and address the companies’ role in the opioid crisis. The Walgreens and CVS deals are the first multistate settlements to hold chain retail pharmacies to answer for their role in the crisis. Today’s announcement is an important milestone in California’s efforts to address an epidemic that has destroyed communities and ripped apart families.

“We’ve made historic strides forward in our fight for justice and relief for Californians hurt by the opioid crisis,” said Attorney General Bonta. “Nothing can bring back the lives lost or erase the suffering caused by this crisis, but we are making sure those who caused it and profited from it are held to account for their greed and willful misconduct. These hard-fought and hard-won settlement funds will be critical in supporting victims and getting them the help they need to recover. I am proud of the work put in by my team and by our partners across the nation in making these wins possible.”

Opioid manufacturers Allergan and Teva have committed to move forward with settlements for up to $2.37 billion and $4.25 billion, respectively, to resolve allegations that, among other things, the companies deceptively marketed opioids by downplaying the risks of addiction and overstating their benefits. If the settlements are approved by the court, California may receive up to approximately $375 million from the Teva settlement and up to approximately $205 million from the Allergan settlement. The settlements with the opioid manufacturers also include strong injunctive relief that prohibits opioid-related marketing by Teva while Allergan is prohibited from selling opioids for the next 10 years.

Chain pharmacies CVS and Walgreens also committed to moving forward with national settlements worth up to $5 billion and $5.7 billion, respectively, to resolve claims that the companies ignored signs of prescription abuse and failed to prevent drug diversion. If approved by the court, California may receive up to approximately $470 million from the CVS settlement and up to $510 million from the Walgreens settlement. CVS and Walgreens have also agreed to injunctive relief that requires the pharmacies to monitor, report, and share data about suspicious activity related to opioid prescriptions. A final agreement with Walmart, worth up to $3.1 billion, is not being announced today; however, that settlement is expected to move forward in the coming weeks.

Since the first wave of the opioid epidemic hit the United States in 2000, it has taken hundreds of thousands of lives, torn families apart, and eroded the social fabric of communities. Its toll has continued to grow year after year. Data from the Centers for Disease Control and Prevention (CDC) indicate that in 2021, more than 80,000 people may have died of overdose deaths involving opioids in the U.S., and over 11,200 of those deaths took place in California.

The opioid manufacturers, distributors, and pharmacies who helped fuel the crisis through their unlawful practices and profited from it are at the center of Attorney General Bonta’s fight for justice and relief.  To date, the California Department of Justice has secured approximately $50 billion in nationwide settlements and expected settlements, including with opioid manufacturers Johnson & Johnson, Mallinckrodt, and Purdue Pharma L.P. and the Sackler family; distributors Cardinal Health, McKesson, and AmerisourceBergen; and consulting firm McKinsey & Company.

• In March of 2022, Attorney General Bonta announced a $6 billion conditional settlement with Purdue Pharma and the Sackler family over their alleged deceptive and illegal marketing and sales practices, in an agreement that would also allow the family’s name to be removed from buildings, scholarships, and fellowships.
• In February 2022, a bankruptcy court confirmed a plan that would allow an agreement between certain states, including California, and Mallinckrodt, the largest generic opioid manufacturer in the United States, to move forward. That settlement includes an expected $1.6 billion payment by the company to a trust that would benefit public and private opioid-related claimants.
• In July 2021, Attorney General Bonta announced a $26 billion settlement, which was finalized in Spring 2022, with Johnson & Johnson, which manufactured and marketed opioids, and Cardinal Health, McKesson, and AmerisourceBergen, the nation’s three major pharmaceutical distributors. It was the second largest multistate agreement in U.S. history, and its terms bar Johnson & Johnson from being involved in selling or promoting opioids for a decade and require the distributors to monitor, report, and share data about suspicious activity related to opioid sales.
• In February of 2021, the Attorney General announced a $573 million settlement with one of the world’s largest consulting firms, McKinsey & Company. The settlement resolves California’s investigation into the company’s role in advising opioid companies (including OxyContin maker Purdue Pharma) in the promotion and sale of their drugs.

These settlements are expected to bring in billions in funding for California communities, which will, among other things, be used to:

• Increase support for substance-use disorder facilities and improve infrastructure for treatment.
• Address the needs of communities of color and vulnerable populations, including those who are unhoused.
• Strengthen availability of Naloxone (also known as NARCAN) or other FDA-approved overdose reversal drugs.
• Double down on interventions for drug addiction in vulnerable youth and supporting those in the juvenile justice system with treatment options.
• Improve training and resources for law enforcement and first responders regarding appropriate practices and precautions when dealing with fentanyl or other drugs, including with regard to addressing the needs of criminal justice-involved persons with opioid-use disorder and mental health issues.
• Implement best practices for outreach, diversion, and deflection.
• Support job creation programs to help connect those recovering from substance use disorders with gainful employment and pathways to financial stability.
• Improve data-sharing and management systems to detect suspicious activity, including with regard to the prescription of controlled substances.

Source: US State of California

SACRAMENTO – California Attorney General Rob Bonta and Governor Gavin Newsom today issued a joint statement urging the Temecula Valley Unified School District Board of Education (Board) to provide information regarding its process and decision-making related to the Board’s decision to reject the Social Studies Alive program for grades 1 through 5 on May 16, 2023. The curriculum, recommended by district staff and adopted by the State Board of Education, is in line with the FAIR Act’s requirements. In light of this, Attorney General Bonta today sent a letter to Superintendent McClay and Board President Komrosky expressing concern over the Board’s actions, and seeking information regarding its decision.

“We urge the Board to adhere to the FAIR Act’s provisions and provide a comprehensive social sciences curriculum that reflects our diverse state and nation. This should include accurate representations of historical figures like Harvey Milk and not be influenced by personal bias,” said Attorney General Rob Bonta. “Restricting what our children are taught in school based on animus or ideological opposition contradicts our societal values. The Board needs to explain its decision making, and moving forward will need to ensure students have access to a wide range of ideas and perspectives.”

“In the Golden State, our kids have the freedom to learn — and there are consequences for denying that freedom,” said Governor Gavin Newsom. “California is closely watching the actions of malicious actors seeking to ban books, whitewash history, and demonize the LGBTQ+ community in Temecula and across the state. If the law is violated, there will be repercussions.”

Attorney General Bonta’s letter emphasizes that local educational agencies have a legal obligation to implement a social sciences curriculum highlighting the contributions of various groups, including gay, bisexual, and transgender Americans. Furthermore, it highlights that a decision to remove or reject curriculum materials reflecting these identities may constitute unlawful discrimination. Concerning statements made by Board members during the May 16 meeting, including allegations about LGBTQ+ community leader Harvey Milk, the Attorney General’s letter expresses deep concern about the potential discriminatory intent.

To investigate the Board’s process and rationale for rejecting Social Studies Alive, the letter requests the Board produce various documents, including instructional materials assessment and adoption policies, documents related to the proposed adoption of Social Studies Alive, and any complaints related to the program no later than June 22. The letter sent by Attorney General Bonta can be found here. The letter sent today follows a joint letter issued on June 1 by Governor Newsom, Attorney General Bonta and Superintendent Thurmond on “Educational Rights and Requests to Remove Instructional Materials,” which is available on the California Department of Education website.

Source: US State of California

OAKLAND – California Attorney General Rob Bonta joined a bipartisan coalition of 28 attorneys general in submitting a comment letter to the Federal Communications Commission (FCC) on proposals designed to reduce the number of robocalls and robotexts received by consumers. On March 16, the FCC adopted anti-robotext rules requiring for the first time that mobile wireless providers block text messages that are highly likely to be illegal — because the sender phone numbers are invalid, unallocated, unused, or found on a “do-not-originate” list. Attorney General Bonta strongly supported those rules. Today’s letter builds on that work by responding to the FCC’s request for public comment regarding additional anti-robotext and anti-robocall protections needed for consumers.

“Day in and day out, Californians receive illegal robocalls and robotexts — that needs to stop,” said Attorney General Bonta. “Robocalls and robotexts are not just annoyances, but can also scam consumers, particularly our elders, out of hundreds or thousands of dollars. While we’ve made some progress in addressing this problem, I support the FCC’s efforts because there is more work that needs to be done.”

In the comment letter, the attorneys general:

• Support the FCC’s proposed rule that would formally clarify that the Do-Not-Call Registry protections extend to robotexts, not just robocalls. This means that a company cannot send a marketing text to a phone number on the Do-Not-Call Registry without the prior express consent of that consumer.
• Support the FCC’s proposed rule that would require wireless telecommunications companies, after receiving notice from the FCC, to investigate and block texts of senders suspected of transmitting illegal texts. 
• Urge the FCC to clarify what it means for a consumer to “consent” to receiving telemarketing calls or texts under the Telephone Consumer Protection Act (TCPA). The attorneys general write that in order to close the so-called “lead generator loophole” — through which an entity provides a service online, such as an insurance quote, in exchange for a consumer agreeing to receive calls and/or texts from that entity’s marketing partners — the FCC needs to make clear that consent to receiving telemarketing calls or texts should be given one entity at a time. A single entity’s marketing partners can often run in the thousands. 

Attorney General Bonta has been at the forefront of multistate and state-federal efforts to combat illegal robocalls and robotexts. Among other actions, Attorney General Bonta has filed a lawsuit against Avid Telecom for allegedly initiating and facilitating billions of unlawful robocalls in California and around the country; announced a new partnership on robocall investigations with the FCC;  and announced the launch of a bipartisan, nationwide Anti-Robocall Litigation Task Force to investigate and take legal action against the telecommunications companies responsible for bringing a majority of foreign robocalls into the United States.

In submitting the comment letter, Attorney General Bonta joins the attorneys general of Alabama, Alaska, Arizona, Colorado, Connecticut, District of Columbia, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Vermont, Virginia, Washington, Wisconsin, and Wyoming.

A copy of the letter is available here.

Source: US State of California

OAKLAND – California Attorney General Rob Bonta and California Coastal Commission Executive Director Dr. Kate Huckelbridge today issued the following statements in response to the decision by the United States Supreme Court to deny oil and gas interests’ petition for certiorari in the case American Petroleum Institute v. Environmental Defense Center. By denying the petition, the Supreme Court is allowing the Ninth Circuit Court of Appeals’ 2022 decision to stand, which affirmed an injunction obtained by California and non-profit organizations blocking the United States Department of the Interior (Interior) from authorizing fracking on offshore platforms off the coast of California without further environmental review. 

“One of our prized jewels is our beautiful coastline, and with today’s decision, we are able to continue protecting it from harmful fracking,” said Attorney General Bonta. “The science and the law were on our side, and the Supreme Court agreed that there was no reason to continue this litigation.” 

“Today’s decision is a victory for California’s coast and ocean,” said California Coastal Commission Executive Director Dr. Huckelbridge. “We are pleased that the Coastal Commission can continue to carefully scrutinize offshore fracking, as part of our mandate to protect state waters.”

In its 2022 decision, the Ninth Circuit held that agencies within Interior — specifically the Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement — violated the National Environmental Policy Act in 2016 when they found that fracking on the offshore platforms would pose “no significant impact” to the environment, and also held that they violated the requirements of the Endangered Species Act and the Coastal Zone Management Act. 

In December 2016, the California Attorney General’s Office and the California Coastal Commission filed a lawsuit challenging the agencies’ actions, which would have cleared the way for fracking, acidizing, and other advanced well-stimulation treatments on the Pacific Outer Continental Shelf off the coast of California.

Source: US State of California

 

BAKERSFIELD – As part of a statewide effort to address hate, California Attorney General Rob Bonta today was joined by Bakersfield Mayor Karen Goh and local leaders for an anti-hate roundtable discussion. The roundtable in Bakersfield is the 11th in a series of meetings led by Attorney General Bonta across the state to bring together local elected officials, law enforcement officers, and community leaders to discuss best practices in addressing hate crime. The roundtables are broadly aimed at developing strategies to address bias and hate, increasing awareness around available resources for members of the public, and strengthening responses to hate crimes and incidents in California.

“There is no place for hate in California, and now more than ever, we must stand united against hate and extremism,” said Attorney General Rob Bonta. “The community involvement and local support of cities across California aids in better understanding awareness of the issue to identify best practices to eliminate the staggering rise of hate and extremism. I want to thank Mayor Goh and local leaders in Bakersfield for their partnership and commitment to combating the rise of hate, fostering holistic, community-based responses, and providing resources where they are most needed. Every Californian deserves to feel safe in their cities and communities.”

“Hatred of our brothers and sisters has no place in the City of Bakersfield,” said Mayor Karen Goh. “I thank the Attorney General for bringing the community together for this important discussion.”

In 2021, California experienced an alarming 32.6% overall increase in reported hate crimes, the highest number of reported hate crimes in the state since the aftermath of the terrorist attacks of September 11, 2001. Although not captured in statewide hate crime statistics, it’s also important to remember that hate incidents — acts that do not rise to the level of a crime — are also incredibly harmful and can leave lasting, negative impacts on all our communities. The critical discussion held today focused on developing community-based solutions to protect residents and communities from harm.

Attorney General Bonta has issued a series of reports, guidance, and resources to help the public and law enforcement better understand and address hate crimes in California. Given the ongoing challenge presented by hate crime, the Attorney General urges leaders across the state and members of the public to review and make use of these important resources, which include a law enforcement bulletin summarizing applicable civil and criminal hate crime laws, guidance to prosecutors to help strengthen prosecution and enforcement, and brochures and fact sheets in more than two dozen languages to assist Californians in identifying and responding to hate crime events. In 2021, Attorney General Bonta also released a special report on anti-Asian hate crimes during the pandemic, which offers important context and analysis regarding the recent increases in anti-Asian hate crime events.

Attorney General Bonta launched the Racial Justice Bureau, which, among other things, supports the California Department of Justice’s broader mandate to advance the civil rights of all Californians by assisting with new and ongoing efforts to combat hate and bias. In 2021, the Attorney General began proactively engaging with local city leaders in the 13 biggest cities in California through roundtables in San Francisco, Oakland, Sacramento, San Diego, Riverside, Long Beach, Santa Ana, San Jose, Stockton, and Anaheim. 

More broadly, the Attorney General is deeply committed to responding to the needs of historically marginalized and underrepresented communities and, in July 2021, also launched the Office of Community Awareness, Response, and Engagement to work directly with community organizations and members of the public as part of the effort to advance justice for all Californians.

Members of the public can further explore hate crime data on OpenJustice.

If you believe you or someone you know has been the victim of a hate crime, notify local law enforcement and consider taking the following steps: 

• If you are in immediate danger, call 911 and if needed, seek medical attention.
• Write down the exact words that were used and take note of any other relevant facts.
• If safe to do so, save all evidence and take photos.
• Get contact information for other victims and witnesses.
• Reach out to community organizations in your area that deal with hate crimes or incidents.

Reports of hate incidents can also be made to the California Civil Rights Department CA v. Hate hotline and online portal at any time in 15 languages or by calling (833) 866-4283 or 833-8-NO-HATE, Monday to Friday from 9 a.m. to 6 p.m., and talking to a trained civil rights agent in over 200 languages. Outside of those hours, people can leave a voicemail or call 211 to report a hate incident and seek support from a professional trained in culturally competent communication and trauma-informed practices.

Source: US State of California

California receiving over $7.1 million of settlement funds 

OAKLAND – California Attorney General Bonta today joined a coalition of 42 attorneys general in announcing a settlement against Invidior Inc. (Indivior) to resolve allegations that the global pharmaceutical company violated state and federal antitrust laws by attempting to maintain market exclusivity over Suboxone. As part of the settlement, Indivior will pay $102.5 million to the states and be prohibited from engaging in future anticompetitive conduct. Manufactured and marketed by Invidior, Suboxone is a prescription drug approved for use by recovering opioid addicts to avoid or reduce withdrawal symptoms while they undergo treatment. California will be receiving over $7.1 million of the multistate settlement funds.

“The cost of prescription drugs is a tremendous problem for many Californians, and Indivior contributed to that problem by preventing lower cost generics from competing with Suboxone, their branded opioid addiction treatment drug,” said Attorney General Bonta. “Opioid addiction treatments should be accessible to everyone — especially our most vulnerable populations that need them for their recovery. With today’s settlement, we’re holding Indivior accountable and ensuring it doesn’t engage in similar anticompetitive conduct in the future.” 

In addition to requiring Indivior to pay $102.5 million, under the settlement:  

• Indivior must provide the states with information and reasons for any reformulated versions of Suboxone; 
• If pharmaceutical companies file for Food and Drug Administration (FDA) approval of generic versions of Suboxone, Indivior must leave the original product on the market for a limited period to allow doctors and patients to choose which formulation they like better; and
• If Indivior files an FDA Citizen Petition in an attempt to delay generic competition in the future, it must also submit any data or information underlying that petition to the FDA and the states.

Indivior received FDA approval for Suboxone in 2002, along with exclusive rights to sell the drug for seven years based on representations that it was otherwise unlikely to recover its investment in the drug. Suboxone originally came in tablet form. However, in 2010 — a year after Indivior’s exclusive right to the Suboxone tablet had expired and generic manufacturers were set to enter the market — the company switched from tablet to sublingual film, falsely citing safety concerns. Sublingual film is a dissolving film. 

In response, the California Attorney General’s office and fellow attorneys general sued Indivior in 2016, alleging that Indivior engaged in a “product-hopping” scheme to block competition to Suboxone. In such a scheme, pharmaceutical companies try to maintain profits generated via a monopoly by slightly reformulating their product in a way that blocks generic competitors without offering any significant medical or therapeutic advantages to patients. 

In April 2021, Attorney General Bonta announced a separate $300 million settlement against Indivior resolving claims that Indivior falsely and aggressively marketed Suboxone, resulting in improper use of state Medicaid funds. California was a part of the team of states that negotiated the settlement which was paid to all 50 states, the District of Columbia, and Puerto Rico. 

Attorney General Bonta is joined in today’s settlement by the attorneys general of Alabama, Alaska, Arkansas, Colorado, District of Columbia, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.

A copy of the agreement, which was submitted to the United States District Court for the Eastern District of Pennsylvania for approval, can be found here.

Source: US State of California

 Statewide leaders highlight legal and constitutional protections restricting the removal of books from libraries and schools 

SACRAMENTO – Attorney General Rob Bonta, Governor Gavin Newsom, and State Superintendent Tony Thurmond today sent a joint letter to all county school superintendents, district school superintendents, and charter school administrators cautioning against book bans. The letter outlines pertinent educational civil rights and corresponding legal mandates school administrators are required to follow to preserve freedom and ensure access to diverse perspectives and curricula. 

“In the first half of this school year alone, 1,477 books were banned nationally, with teachers and librarians threatened with prison time for shelving the wrong book,” said Governor Newsom, Attorney General Bonta, and Superintendent Thurmond. “As state leaders elected to represent the values of all Californians, we offer our response in one shared voice: Access to books – including books that reflect the diverse experiences and perspectives of Californians, and especially, those that may challenge us to grapple with uncomfortable truths – is a profound freedom we all must protect and cultivate.”

The joint letter sent today highlights case law and constitutional precedent that restricts the removal of books from libraries and schools; the responsibilities of school administrators to provide students exposure to various world views; and the legal mandates that require school administrators to provide an unbiased curriculum to students and preserve freedom of speech. Additionally, the joint letter informs local educational agencies that if they remove or ban instructional materials from classrooms or libraries, they may be requested to provide information to the Attorney General’s Office for analysis. 

While other states ban books, California is improving education outcomes and investing tens of billions of dollars to improve literacy. California outperformed most states — including Florida and Texas — in mitigating learning loss during the pandemic, and through historic levels of school funding, the state is building a cohesive structure of support for educators and students that reflects a focus on equity, inclusion, and academic success.

A copy of today’s joint letter is available here.

Source: US State of California

OAKLAND – California Attorney General Rob Bonta is co-leading a coalition of 15 attorneys general in submitting a comment letter to the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) that proposes much-needed reforms to the tenant screening process. Californians seeking rental housing are facing an increasingly competitive housing market, and their efforts to secure housing are hampered by landlords and tenant screening companies that engage in problematic practices during the tenant screening process, commonly referred to as the tenant background check. In their letter, the attorneys general underscore that they have a strong interest in ensuring that all renters — including minorities and renters with lower income levels, who may be more likely to be harmed by problematic screening practices — have access to safe, quality, and affordable housing.
 
“For too many Californians, securing a good, decent place to rent is challenging,” said Attorney General Bonta. “I’m co-leading a coalition of attorneys general urging action to address one of the barriers to doing so. We are sharing with the FTC and CFPB problems that renters commonly encounter during the background check process and proposed regulatory reforms that would mitigate those issues. Federal action on these issues would complement the work the California Department of Justice’s Housing Justice Team is doing to advance housing access, affordability, and equity in California.” 
 
The FTC and CFPB are jointly responsible for enforcing the Fair Credit Reporting Act (FCRA), which imposes requirements on certain aspects of tenant screenings. On February 28, 2023, as part of the Biden Administration’s whole-of-government approach to promoting greater fairness in the rental housing market, the FTC and CFPB published a Request for Information on tenant screenings. This letter responds to that Request for Information.
 
In their letter, the attorneys general underscore that:

• Prospective tenants are often subject to inflated and hidden application fees. The attorneys general recommend, among other things, requiring that application fees be clearly disclosed and commensurate with the actual costs incurred by the landlord.

• Tenant screening reports compiled and sold by tenant screening companies, which are often generated on automated record retrieval with little or no verification, often contain inaccuracies that can lead to rental applicants being denied housing. For example, screening companies may search for only partial name matches, even though doing so does not comply with the FCRA. The attorneys general recommend, among other things, requiring tenant screening companies to provide a free copy of any tenant screening report to a housing applicant when it provides the report to a landlord, to disclose the underlying data used to make a recommendation or screening score, and to investigate and correct allegedly inaccurate or incomplete information in screening reports.

• Landlords and tenant screening companies increasingly rely on problematic screening algorithms that combine various information to generate a single score or result indicating how “safe” it would be to rent to a prospective tenant. These algorithms lack transparency and can be inaccurate, and can have a discriminatory impact on underserved communities. The attorneys general recommend, among other things, requiring that tenant screening companies disclose their reliance on algorithms and screen algorithm models for bias against protected classes and prohibiting the use of certain types of records in screening reports. 

In submitting the comment letter, Attorney General Bonta was joined by the attorneys general of Arizona, Colorado, District of Columbia, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New York, Pennsylvania, Rhode Island, Vermont, and Wisconsin.

A copy of the comment letter can be found here.