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
On May 11, 2026, Connecticut Attorney General William Tong led a bipartisan coalition of 21 attorneys general in submitting a comment letter to the U.S. Food and Drug Administration (FDA) urging the agency to abandon draft guidance that would ease approvals for flavored e-cigarette products. The coalition argues the guidance ignores evidence that flavored e-cigarettes disproportionately drive youth addiction and that FDA has failed to enforce existing authorization requirements for e-cigarette products. The letter references past tobacco and e-cigarette enforcement actions, including the 1998 tobacco master settlement agreement and the 2022 $438.5 million settlement with JUUL Labs.
Connecticut’s legislature passed House Bill 5312, creating new civil enforcement mechanisms for deepfake digital sexual assault, including unauthorized dissemination of synthetically created intimate images and AI-generated child pornography. The bill establishes a private right of action for victims and empowers the Connecticut Attorney General to pursue civil injunctions and penalties against abusers and platforms hosting illegal content. This builds on prior Connecticut laws criminalizing unauthorized intimate image dissemination.
Connecticut Attorney General William Tong praised final passage of House Bill 5312, which creates new civil enforcement mechanisms for deepfake digital sexual assault. The legislation allows the AG to pursue civil injunctions and penalties against platforms that disseminate illegal synthetic intimate images, including AI-generated child pornography, and establishes a private right of action for victims. The bill builds on prior Connecticut laws criminalizing unauthorized dissemination of intimate images.
$300K
Connecticut Attorney General William Tong announced a settlement with international trade platform Made-in-China to cease all U.S. sales of unlawful 'research grade' GLP-1 weight loss drugs following an investigation into direct sales to consumers without prescriptions or medical oversight. The settlement prohibits the platform from hosting GLP-1 sales to U.S. customers, requires a monitoring system to remove non-compliant listings, and imposes a $300,000 penalty suspended after an initial $30,000 payment. Additional settlements were announced with Radiance Medspa and Advanced Medical Weight Loss over compounded non-FDA approved GLP-1 drugs.
Connecticut Attorney General William Tong issued a statement on May 1, 2026, announcing the final passage of bipartisan legislation targeting youth social media addiction and artificial intelligence harms. The legislation imposes new obligations on social media companies regarding minor account settings, parental consent, and reporting, as well as requirements for AI chatbot operators and employers using automated decision tools. The statement also references ongoing enforcement actions against Meta and TikTok for allegedly designing addictive platform features for youth.
Connecticut Attorney General William Tong issued a statement on May 1, 2026, following final passage of bipartisan legislation to combat youth social media addiction and regulate artificial intelligence harms. The legislation imposes new requirements on social media companies regarding minor users, including parental consent for addictive algorithms, default privacy settings, and annual reporting obligations. It also establishes rules for AI chat bots and automated employment decision tools, including disclosure requirements and self-harm detection protocols.