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ARTICLE · 09 DECEMBER 2015

State AGs In The News - December 3rd, 2015

Blank Rome
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After rejecting an earlier offer for $19 million, a group of lenders suing Target Corp for losses suffered as a result of the 2013 data breach agreed to settle their class action claims for $39.4 million.

United StatesConsumer Protection
Doreen Manchester
Doreen Manchester
Aaron R. Lancaster
Aaron R. Lancaster
Erik Lowe
Erik Lowe
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Charities

California AG Questions the "Charity" Behind Car Donation Organizations

  • California AG Kamala Harris, together with district attorneys for Los Angeles and Ventura counties, filed lawsuits against People's Choice Charities and Cars 4 Causes, including relevant officers and directors, for alleged violations of state laws on deceptive practices, unfair competition, fiduciary duties, and charitable trusts. The two charities solicit donations in the form of used cars, which they sell and then allegedly donate the proceeds to charities selected by the donors.
  • The AG's complaints allege that the organizations (and related persons) spent proceeds from the sale of donated cars disproportionately on administrative and operational costs —97 percent for People's Choice; 87 percent for Cars 4 Causes—while indicating to donors that the majority of the proceeds would go toward the designated charity. In addition, the complaints allege that both organizations

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