News & Analysis as of

Civil Monetary Penalty False Statements

Goodwin

NY Attorney General Announces $250,000 Settlement with Money Transfer Provider

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On June 16, 2025, the New York Attorney General announced it had entered into a stipulated final judgment to settle its suit against ​a non-bank money transfer provider over alleged violations of federal and state consumer...more

ArentFox Schiff

FTC Continues to Target Misleading ‘Made in USA’ Claims

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The Federal Trade Commission (FTC) has continued its crackdown on false and misleading “Made in USA” claims. Since finalizing the Made in the USA Labeling Rule in 2021, which authorizes the agency to levy civil penalties...more

Hinch Newman LLP

Did Your Company Receive an FTC Warning Letter or Notice of Penalty Offense?

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Has your company received an FTC warning letter or a penalty offense notice? If so, such correspondence should not be ignored because there is a high likelihood that the FTC is in the process of actively and quickly seeking...more

Kohrman Jackson & Krantz LLP

FTC’s “Fake Review” Portal is Live: How Businesses Can Identify and Report Fake Reviews

The new federal rule combating fake reviews took effect last month, launching the Federal Trade Commission’s (FTC) endeavor to protect consumers from misinformation related to online products and services. ...more

BCLP

Artificial Intelligence Stays in the SEC's Cross-Hairs

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As news stories about AI have surged, so have enforcement actions by the SEC alleging fraudulent statements about AI capabilities....more

Hinch Newman LLP

What Digital Marketers and Influencers Need to Know About the FTC Final Rule Banning Fake Consumer Reviews and Testimonials

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As previously blogged about here, following notices of proposed rulemaking in 2022 and 2023, on August 22, 2024 the Federal Trade Commission finalized a rule that will impose monetary civil penalties false and misleading...more

Fenwick & West LLP

SEC Charges Coffee Pod Co. Over Recyclability Claims

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On September 10, the SEC charged Keurig with making inaccurate statements regarding the recyclability of K-Cups. According to the SEC’s order, in annual reports for fiscal years 2019 and 2020, Keurig stated that its...more

BCLP

SEC Roasts Keurig for Claims Regarding Recycling of K-Cup Pods

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On September 10, 2024, the SEC announced that it had charged Keurig Dr. Pepper for making incomplete, and therefore inaccurate, statements regarding the recyclability of its popular K-cup pods....more

Cozen O'Connor

Utah AG Secures $42.5 Million Judgment in Real Estate Investment Fraud Case

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Utah AG Sean Reyes has secured a $42.5 million judgment against Real Estate Workshop and associated individuals and entities (collectively, “REW”) for their involvement in an alleged real estate investment fraud scheme that...more

Foley & Lardner LLP

Don’t Buy The Buzzwords: “AI Washing” Gets Its Reckoning

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Since the release of ChatGPT 3.5 in November 2022, public interest in artificial intelligence (AI) has surged in a classic example of a hype cycle. As with past technological breakthroughs, companies may be tempted to...more

Cozen O'Connor

Proposed CFIUS Rules Affirm Evolution and Growth of Review Process, Expansion of Penalties

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On April 11, 2024, the Committee on Foreign Investment in the United States (CFIUS) issued a proposed update expanding its mitigation and enforcement provisions, the first such action since the enactment of the Foreign...more

Seward & Kissel LLP

SEC Settles Charges with Advisers for Marketing Rule Violations Related to AI Washing

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Who may be interested: Investment Advisers - Quick Take: The SEC recently settled charges with two investment advisers, through separate orders, relating to each adviser’s alleged violations of Rule 206(4)-1 under the...more

Bilzin Sumberg

SEC Issues First AI-Related Civil Penalties and Warns Against “AI Washing”

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​​​​​​​The Securities and Exchange Commission on Monday, March 18, 2024, entered into settlements with Delphia (USA) and Global Predictions, which agreed to pay civil penalties totaling $225,000 and $175,000, for “AI...more

Sheppard Mullin Richter & Hampton LLP

SEC Cracks Down on Over-Hyped AI Claims – Director Says This is Just the Beginning

The SEC has charged and settled claims with two Investment advisers with making false and misleading statements about their use of artificial intelligence (AI). The SEC found that Delphia (USA) Inc. and Global Predictions...more

Jones Day

Minor Revolution at the CFTC: New Enforcement Guidance Will Sharpen Settlement Terms

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The Background: The CFTC Division of Enforcement ("Enforcement") recently issued an advisory on new enforcement policies that increase the agency's focus on corporate accountability through increasing civil penalties,...more

ArentFox Schiff

FTC Crack Down Continues Against False Made in USA Claims

ArentFox Schiff on

The Federal Trade Commission (FTC) continues to evidence a strong commitment to bringing enforcement actions against false or deceptive US-origin marketing claims. In short, to avoid landing on the wrong side of such an...more

Seward & Kissel LLP

SEC Charges Adviser and its Principal in Illegal Short Selling Scheme

Seward & Kissel LLP on

Who may be interested: Investment advisers, broker-dealers. Quick Take: The SEC recently filed a lawsuit charging an investment adviser and its managing partner (collectively, the Adviser) with allegedly engaging in a...more

Hinch Newman LLP

New FTC Action on Money-Making Opportunities and Earnings Claims Results in Big Civil Penalties

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Advertisers, beware. On January 13, 2023, the Federal Trade Commission announced that as a result of a Federal Trade Commission lawsuit, investment advice company WealthPress has agreed to a proposed court order that...more

Bass, Berry & Sims PLC

It Happened! ESG Task Force’s First Enforcement Action

Bass, Berry & Sims PLC on

In March 2021, the Securities and Exchange Commission’s (SEC) then-acting chair, Allison Herren Lee, announced the creation of an Environmental, Social and Governance (ESG) Task Force within the SEC’s Division of Enforcement....more

Goodwin

Delaware Chancery Court Dismisses Cigna Derivative Suit Over Failed Anthem Merger

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Delaware Chancery Court Dismisses Cigna Derivative Suit Over Failed Anthem Merger; The PCAOB Sanctions Former KPMG Vice Chair Of Audit For Failure To Supervise Senior Members Of KPMG's Audit Practice; Ninth Circuit Affirms...more

Eversheds Sutherland (US) LLP

SEC charges investment adviser in connection with use of backtested performance

On January 13, 2022, the Securities and Exchange Commission (SEC) announced settled charges against CMG Capital Management Group, Inc. (CMG), a registered investment adviser for failing to adopt and implement policies and...more

ArentFox Schiff

Investigations Newsletter: SEC Charges Cannabis Pill Company with $2 Million Securities Fraud

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SEC Charges Cannabis Pill Company with $2 Million Securities Fraud - On September 28, 2021, the Securities and Exchange Commission (“SEC”) charged a California-based cannabis company C3 International, Inc. (“C3”) and its...more

Cozen O'Connor

Debt Collection Agency Hit With $1.3 Million Default Judgment Over Unlicensed Collections Activity

Cozen O'Connor on

Indiana AG Todd Rokita obtained a default judgment and a permanent injunction against debt collection agency New Britain Financial, LLC (“NBF”) and its owner Nelson Macwan for allegedly acting as a collector without a license...more

Cozen O'Connor

Texas Power Companies Investigated Post-Storm | Cryptocurrency Investors Misled| Student Loan Relief

Cozen O'Connor on

2022 AG Elections- Republican Candidate Seeks 2022 Rematch Against Minnesota’s Incumbent Attorney General- •Doug Wardlow, general counsel for My Pillow, Inc. and a former state representative, has announced he will...more

BakerHostetler

Important Lessons from the DOJ's First Civil Action for CARES Act Loan Fraud

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On January 12, 2021, the Department of Justice (the “DOJ”) settled its first civil action for alleged fraud against the Paycheck Protection Program (the “PPP”) – the primary lending program under the Coronavirus Aid, Relief,...more

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