Covington & Burling LLP operates as a limited liability partnership worldwide, with the practice in England and Wales conducted by an affiliated
limited liability multinational partnership, Covington & Burling LLP, which is formed under the laws of the State of Delaware in the United States
and authorized and regulated by the Solicitors Regulation Authority with registration number 77071..
State Attorneys General investigations, litigation, and enforcement actions can have serious short- and long-term financial, reputational, and legal consequences. State AG offices are bringing more intense scrutiny of high-profile businesses in areas such as antitrust, privacy and data security, and consumer protection. And federal enforcers such as the Federal Trade Commission (FTC) have signaled increased coordination with state partners. Now more than ever, businesses need insightful advice and effective strategies to achieve a favorable outcome in dealing with state regulators.
Covington’s State AG practice provides businesses with the practical advice they need to work proactively and effectively to resolve State AG investigations and other actions. Our lawyers have extensive experience litigating these matters and have regularly resolved State AG investigations without enforcement action or with favorable settlements.
Our team has related experience through previous high-level positions at the Department of Justice (DOJ), FTC, federal and state enforcement agencies, and in U.S. Attorney General offices in several states. We actively engage with federal and state law enforcement authorities and regulators, so we understand their objectives and can advise our clients on how best to resolve them.
Multidisciplinary Approach
Our State AG practice takes a multidisciplinary approach to developing comprehensive solutions for our clients. Our lawyers advise clients on every aspect of defending against both individual and multistate investigations. We design effective strategies for navigating and efficiently resolving both routine and complex matters expeditiously, and also possess the skills and experience crucial to succeeding in high-stakes litigation when necessary.
State AG antitrust investigations often occur alongside federal investigations by the DOJ, FTC, or Consumer Financial Protection Bureau (CFPB). Our antitrust lawyers are adept at handling these parallel investigations. We coordinate efforts to successfully work through complex scenarios, including both multistate and individual state actions. We also have in-depth and notable experience with California and New York State AG investigations.
Advertising and Consumer Protection Investigations
All 50 states and Washington, DC have their own statutes that protect consumers against unfair or deceptive acts or practices. State AGs use these consumer protection statutes as their primary enforcement tool, but these laws are intentionally broad and the threshold for initiating actions under them is low. State AG actions can result in potential penalties of up to hundreds of millions of dollars, not to mention onerous injunctive relief. Our lawyers have experience successfully navigating State AG investigations related to advertising, marketing, and consumer product safety issues.
Data Privacy
State AGs have intensely focused on the enforcement of data protection and privacy laws in recent years. Covington’s industry-leading data privacy lawyers advise companies on cybersecurity, data privacy, and information security matters, and are well positioned to help defend against State AG investigations across multiple sectors, including:
Data security
Employment privacy
Financial privacy
Health privacy
IT/technology
Transactions
Investigations and Litigation
The pleading and proof requirements for State AG consumer fraud cases and other investigations are minimal. Our trial lawyers know which arguments to present to raise the bar for what State AGs must prove in order to prevail. At the investigation stage, avoiding or narrowing charges against our clients is crucial. We take a proactive and cooperative approach as part of our strategy for defending State AG investigations, with the goals of:
educating State AGs about the client’s perspective on the underlying issues when that is helpful; and
addressing the dynamics of a multistate group in a multistate investigation.
Financial Services
Our financial services regulatory lawyers have significant experience with regulatory and enforcement issues in the financial services industries and represent an array of businesses that have been targeted by State AGs and other state financial regulators with enforcement authority. We have a great deal of experience with state financial services statutes, including consumer payments and lending, as well as experience with federal preemption of the statutes. We understand the intricacies of our clients’ businesses, which puts us in the best position to advise them on developing an effective State AG investigation strategy as well as avoiding future investigations.
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