New York Attorney General Letitia James and a multistate coalition sued the U.S. Department of Labor, alleging it unlawfully canceled grants for state unemployment insurance system upgrades after approving the states’ plans. The coalition seeks restoration of the remaining funding and damages; the release does not report a court ruling or penalty.
No remedy has been imposed. The coalition asks the court to return the unlawfully terminated balance of funding and award damages, allowable interest, fees, and costs.
This release concerns grant agreements, not a privacy enforcement action. Teams managing government grants or vendor projects dependent on grant funding should review termination and suspension rights, limits on unilateral cancellation or changes in priorities, notice and opportunity-to-cure procedures, good-faith performance obligations, reimbursement of costs already incurred, and dispute-resolution and damages provisions. In vendor agreements funded by grants, confirm that funding-contingency and termination clauses align with the grant’s actual cancellation terms; no specific customer, employee, or data-processing clause is implicated by this release.
Entity
U.S. Department of Labor
Industry
OtherOfficial Press Release
https://ag.ny.gov/press-release/2026/attorney-general-james-sues-protect-funding-unemployment-benefit-system-upgrades
maryland department of labor et al v united states of americ
https://ag.ny.gov/sites/default/files/court-filings/maryland-department-of-labor-et-al-v-united-states-of-america-complaint-2026.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"the U.S. Department of Labor (DOL) abruptly canceled the grants"
"Congress included $2 billion in the American Rescue Plan Act"
"The coalition argues that DOL broke its binding agreements with the states."
"Attorney General James and the coalition are asking the court to return the unlawfully terminated balance of funding and award damages, allowable interest, fees, and costs."
"AG James is Suing to Recover $17 Million in Funding Illegally Terminated by U.S. Department of Labor"
Colorado Attorney General Phil Weiser and a multistate coalition sued the U.S. Department of Labor over its termination of grants for unemployment insurance system improvements. The states allege the terminations breached their grant agreements and seek money damages; the release does not describe a privacy violation or an imposed penalty.
$35.0M
New York Attorney General Letitia James announced a settlement with former Celsius CEO Alex Mashinsky over allegations that he misled investors about Celsius’s safety, users, and investment strategies, and failed to register as required under New York law. The settlement permanently bars Mashinsky from the securities, commodities, and cryptocurrency industries and provides for up to $35 million in payments to New York under specified conditions.
$1.1M
New York and a coalition of 47 other attorneys general secured settlements with Ascend Laboratories and Mayne Pharma over an alleged scheme to inflate generic drug prices and reduce competition. Mayne agreed to pay $650,000 and Ascend $400,000, with settlement funds distributed to impacted consumers and the companies agreeing to internal antitrust reforms.
New York Attorney General Letitia James joined a 15-state coalition in suing HHS Secretary Robert F. Kennedy, Jr., challenging changes that removed seven vaccines from the CDC’s list of vaccinations recommended for every child. The states allege the changes and ACIP appointments violated the Administrative Procedure Act and ask the court to invalidate them; the release reports no penalty or court-ordered remedy.
New York Attorney General Letitia James joined a coalition lawsuit challenging NHTSA’s rollback of federal fuel economy standards. The coalition alleges that the final rule violates federal law and asks the court to strike it down; the press release describes no privacy violations or monetary penalty.
$400.0M
New York Attorney General Letitia James and a coalition of 47 other attorneys general secured a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. over an alleged scheme to coordinate generic drug prices and reduce competition. The settlement provides for consumer compensation and requires Sandoz to implement antitrust compliance reforms, including annual staff training and a Chief Compliance Officer.