Over the years NAAG has been awarded portions of major settlement agreements between corporate defendants and coalitions of states alleging consumer protection violations.
NAAG won $15 million out of the national mortgage settlement with five major financial institutions for alleged wrongful foreclosures.
Democrats have majorities on most of NAAG's fund committees, and Republican AGs say group leadership has stonewalled when they've asked how the committees are distributing the funds.
In a February letter to AGs, NAAG executive director Chris Toth said state AGs can request "Grants" from fund committees to use for any purpose sanctioned by the settlement.
The rules governing the $15 million mortgage settlement fund provide that recipients "Shall promise to pay back to the Fund all of the amounts received from the Fund in the event the state is successful in the litigation for which funds have been appropriated." The rules for the $20 million Volkswagen fund have an identical provision.
Beyond repaying victims, they also angle for settlement terms that give AGs or other regulators oversight of defendant operations for years to come, a kind of litigation "Mission creep." And they're glad to funnel damages payments to friendly third parties like NAAG. Alabama attorney general Steve Marshall pulled out of NAAG in 2021, citing his frustration with the association's left-leaning consumer protection philosophy.
NAAG landed a $15 million haul when consulting behemoth McKinsey & Company settled a class action lawsuit with 49 states relating to advice it gave to drugmakers like Purdue Pharma to boost sales of opioids.
https://freebeacon.com/democrats/as-national-ags-group-drifts-left-red-states-eye-the-exits/
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