Penalty Amount
$142,500,000
Consumers Affected
416,000
Connecticut Attorney General William Tong announced a $1.85 billion multistate settlement with student loan servicer Navient for unfair and deceptive servicing practices. Navient steered borrowers into costly forbearances and originated predatory loans, resulting in debt relief for over 66,000 borrowers and restitution for 350,000 federal loan borrowers. The settlement includes a $142.5 million payment to attorneys general and conduct reforms to improve servicing practices.
Navient must pay $142.5 million to the attorneys general, cancel $1.7 billion in private student loan debt for over 66,000 borrowers, provide approximately $260 restitution payments to 350,000 federal loan borrowers, implement conduct reforms including training specialists and explaining income-driven repayment options, and notify borrowers about the settlement and Public Service Loan Forgiveness waiver.
In-house legal teams should review all student loan servicing agreements and loan origination contracts with Navient or similar servicers. Focus on clauses governing repayment options (especially income-driven repayment plans), forbearance procedures, disclosures to borrowers, and prohibitions against steering borrowers into more costly products. Required changes may include mandating clear, prominent disclosure of all available repayment options, prohibiting incentives for steering borrowers to forbearances over income-driven plans, implementing robust oversight of servicing practices, and ensuring accurate application of payments and credits.
Entity
Navient
Industry
Financial ServicesOfficial Press Release
https://portal.ct.gov/ag/press-releases/2022-press-releases/ag-tong-announces-settlement-with-student-loan-servicer-navient
navient cjfinal 01132022.pdf?rev=b01039889cfc4c6191678fe315c
https://portal.ct.gov/-/media/ag/press_releases/2021/navient-cjfinal-01132022.pdf?rev=b01039889cfc4c6191678fe315cbce0f&hash=0869DBDEBEC8758CDD521D615DD46F0E
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
$29.6M
Attorney General Jennifer Davenport joined a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, for allegedly conspiring to artificially inflate and manipulate prices, reduce competition, and restrain trade for numerous generic prescription drugs. The settlement includes cooperation in ongoing litigations and internal reforms to ensure fair competition.
$29.6M
Attorney General William Tong led a coalition of 48 states and territories in a $29.6 million settlement with Glenmark, a generic drug manufacturer, to resolve allegations of a widespread conspiracy to artificially inflate prices, reduce competition, and unreasonably restrain trade for numerous generic prescription drugs. The settlement includes cooperation from Glenmark in ongoing multistate litigations and internal reforms to ensure fair competition and compliance with antitrust laws.
$18.0M
Attorney General William Tong led a coalition of 42 attorneys general in a settlement with the bankruptcy trustee for 23andMe, resolving allegations from a 2023 data breach that compromised the genetic data of 6.9 million customers. The settlement includes $150 million in allowed claims, with $18 million paid from bankruptcy funds, and requires enhanced data security measures for the new entity holding the data.
Attorney General William Tong joined a coalition of 12 attorneys general in suing to block the $110 billion acquisition of Warner Bros. Discovery, Inc. by Paramount Skydance Corporation. The lawsuit alleges the merger violates Section 7 of the Clayton Act by substantially lessening competition in theatrical film distribution and basic cable television licensing, which would harm consumers through higher prices and reduced quality.
Attorney General William Tong and 48 other attorneys general submitted comments to the FCC urging stronger rules to prevent scammers from accessing legitimate telephone numbers for illegal robocalls. The coalition is responding to the FCC's proposed rules and asks for measures such as stronger certification, reporting, and prohibitions on number cycling.
$45.0M
Attorney General Tong announced a $45 million multistate settlement with Block, Inc., the company behind Cash App, for misleading consumers about the safety of the platform, failing to protect users from fraud, and not providing promised fraud protection and resolution services. The settlement requires Block to implement major reforms including real customer support, transparent communications, and security commitments, and reaffirms Block's commitment to distribute between $75 million and $120 million to compensate consumers as part of a separate CFPB settlement.