California Attorney General joined a coalition of 17 attorneys general in an amicus brief urging the New York Court of Appeals to uphold the New York Attorney General’s authority to pursue fraud claims in private commercial transactions, the attorney general’s office said Oct. 29.
The brief says states have a sovereign interest and broad police powers to eradicate fraud from their economies; it argues states can enforce antifraud laws even when the direct victims are sophisticated private parties that decline to pursue their own remedies.
“Fraud is fraud, and it should be treated as such,” said Attorney General Bonta in the press release.
The press release said the case traces to a 2022 suit by the New York Attorney General accusing and other defendants of inflating statements of financial condition to obtain favorable deals; a trial court found liability, that finding was upheld on appeal, and the matter is now before New York’s highest court.
The brief argues state enforcement serves the public interest by protecting stakeholders who lack the practical ability to act, leveling the playing field for honest competitors and preventing market damage; the coalition says that authority is needed to stop repeated or persistent business fraud.
Bonta joined the attorneys general of Oregon, Arizona, Connecticut, Delaware, Hawaiʻi, Illinois, Maine, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Vermont, Virginia and Washington, the press release said.
The court has not yet ruled.
State
Rob Bonta
Attorney General · Democrat
Named 2 times in this story.
Portrait: Official portrait
Federal
Donald J. Trump
President of the United States · Republican
Named once in this story.
Portrait: Daniel Torok / The White House (public domain)
Sources & methodology
This report was written from the primary materials below. Links open at the original publisher.
California Attorney GeneralSee something we should correct? Read our corrections policy.