Consumer Protection

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced that Facebook has become the seventh company to sign the Joint Statement of Principles to strengthen privacy protections for consumers around the world who use online applications on their smartphones, tablets and other electronic devices. The agreement extends the reach of California’s privacy protections beyond mobile apps to include social apps in Facebook’s App Center, which are used daily by millions of consumers. Among other protections, the agreement seeks to improve compliance with California law requiring apps that collect personal information to have a privacy policy.

“Consumers deserve to be able to make informed choices about how much personal information they want to share with others when using social apps,” said Attorney General Harris. “We are delighted that Facebook has joined Amazon, Apple, Google, Hewlett-Packard, Microsoft, and Research in Motion to provide consumers with greater control and information about how their personal data is used.  We need to protect privacy while we foster innovation.”

In a letter to Attorney General Harris released today, Facebook wrote “…we hope that you will consider us a signatory to the Joint Statement.” Facebook joins an agreement that was first announced in February when Amazon.com Inc., Apple Inc., Google Inc., Hewlett-Packard Company, Microsoft Corporation, and Research in Motion Limited all signed on to a Joint Statement of Principles. 

In the letter, Facebook’s Chief Privacy Officer Erin M. Egan wrote, “As you know, the Joint Statement’s principles embodied essential protections for Californians and others who use mobile apps by encouraging companies that provide mobile app markets to give developers the ability to provide a link to their privacy policies and to display those links along with other app details….As we built the App Center, we were guided by the principles contained in the Joint Statement.”

Starting in 2011, Attorney General Harris worked with Amazon, Apple, Google, Hewlett-Packard, Microsoft, and Research In Motion to forge the Joint Statement to ensure that emerging online technologies such as mobile apps comply with California’s Online Privacy Protection Act (Simitian, 2004).  The Act requires operators of commercial web sites and online services, including mobile and social apps, who collect personally identifiable information about Californians to conspicuously post a privacy policy.  The posting of a privacy policy promotes transparency and provides consumers with more informed control over their personal information. Today’s agreement recognizes the Facebook App Center’s role as a clearinghouse for a variety of social apps.

A letter from the Attorney General’s Office to Facebook said, “California law requires all operators of commercial web sites and online services, including mobile and social apps, who collect personally identifiable information about Californians to conspicuously post a privacy policy.  We are very pleased that Facebook has incorporated the Principles into the design of the App Center and that Facebook requires, as a condition of participating in the App Center, that developers submit a link to a privacy policy.  We are also pleased to see that Facebook is prominently displaying the link to an app’s privacy policy in the App Center, and is implementing a means to report and remediate privacy issues.”

In addition to signing the Joint Statement, Facebook will participate in a multi-stakeholder Advisory Group on Mobile Privacy Practices that the Attorney General’s Office and the California Office of Privacy Protection have convened to develop best practices for mobile privacy generally and to develop model mobile privacy policies in particular.

Copies of both letters are attached to the electronic version of this release at: http://oag.ca.gov/news

The February 2012 press release announcing the apps agreement can be found here: http://oag.ca.gov/news/press-releases/attorney-general-kamala-d-harris-secures-global-agreement-strengthen-privacy

LOS ANGELES --- California Attorney General Kamala D. Harris today announced the arrest of two individuals in a $1.3 million Ponzi scheme that targeted Latino investors, many of whom were seniors.

Edwin G. Salazar, 34, of Downey, CA and Michael Z. Zuniga, 41, of Fullerton, CA were arrested on 57 counts of elder abuse, grand theft and securities fraud. Salazar’s bail was set at $100,000 and Zuniga’s at $50,000.

“The defendants defrauded investors with promises of guaranteed returns and even convinced some victims to re-finance their own homes in order to participate in the scheme,” said Attorney General Harris. “What victims thought was a resourceful real estate investment only brought them losses and heartbreak.”

From January 2007 through June 2008, licensed insurance agents Salazar and Zuniga, doing business as OMEGA Investment Group, of Downey, CA, issued over $1.3 million in fraudulent securities to individual investors they befriended through their insurance business.

The case was investigated by Department of Justice Special Agent Debra Gard, along with the California Department of Insurance Los Angeles Investigation Division.

“These agents conspired to rip-off trusting members of their own community,” said Insurance Commissioner Dave Jones. “Preying on Senior Citizens for financial gain is deplorable and it will not go unpunished.”

The scheme targeted Latino investors, many of whom were seniors. Investors were promised that their investments were secure and “risk-free” because of the company's strong track record of buying and selling homes in foreclosure. Investors were guaranteed a return of 15 percent. In many cases, the defendants convinced investors to refinance their homes and take out money to invest in the foreclosed properties.

In fact, OMEGA had not been buying and selling foreclosed properties with the money, was never a profitable company, could not secure any funds raised, and diverted funds to other investments and to the personal uses of Salazar and Zuniga. As OMEGA continued raising and diverting money, it began to operate like a classic Ponzi scheme, paying interest to previous investors from capital raised from new ones.

Attorney General Harris formed a Mortgage Fraud Strike Force in May 2011 to investigate and prosecute crimes related to mortgages, foreclosures, and real estate.

This case is being prosecuted by Deputy Attorney General Ed Skelly.

SAN FRANCISCO -- Attorney General Kamala D. Harris and Sonoma County District Attorney Jill Ravitch today announced the arrest of a Petaluma man who stole more than $20 million from dozens of investors in a Ponzi scheme.

Aldo Joseph Baccala, 71, was charged with 167 felony counts of grand theft, securities fraud and elder abuse. He has also been charged with a number of enhancements, which indicate that he engaged in a pattern of theft and fraud related crimes which resulted in a loss of over $3.2 million. Baccala’s bail has been set at $2 million and he is being held at the Sonoma County Adult Detention Facility.

“This Ponzi scheme caused dozens of investors to lose their money through false promises and sham investments,” Attorney General Harris said. “It is important to protect Californians from criminals who use deceptive tactics for personal gain.”

“Through this joint prosecution effort, we intend to seek justice for Sonoma County residents who suffered tragic losses in a fraudulent scheme,” said District Attorney Ravitch.

The arrest declaration alleges Baccala used his Petaluma-based company, Baccala Realty, Inc., to raise millions of dollars from more than 50 investors for ventures in California and other states, such as assisted living facilities, a car wash and other businesses.

Victims of the scheme, many of whom are elderly and who had known Baccala and his family for many years were promised annual returns of 12 percent or more to invest in a specific project which was supposed to be secured by a first or second deed of trust on the property. In fact, none of the promised deeds of trust were ever recorded, and the funds raised were not used as promised.

Baccala also allegedly used money obtained by investors to invest in the stock market and to cover margin calls and stock trading losses. From 2003 to 2008, he lost approximately $8 million in the stock market. As his debts grew, he began promising new investors annual returns of up to 27.5 percent to cover interest payments to earlier investors.

In November 2008, Baccala issued letters to investors saying that he would no longer make promised monthly payments. After receiving numerous complaints, the Sonoma County District Attorney’s Office launched an investigation into Baccala Realty, Inc. in January 2009.

The Sonoma District Attorney’s office was assisted in the investigation by the Attorney General’s office, and the case will be jointly prosecuted.

Victims in this case may obtain more information at http://da.sonoma-county.org/content.aspx?sid=1023&id=2531

SACRAMENTO -- Attorney General Kamala D. Harris today announced two bills to help tenants who suddenly find themselves with the possibility of being displaced because of a foreclosure passed the Assembly and Senate. The bills are part of the Attorney General’s proposed California Homeowner Bill of Rights.

Assembly Bill 2610 (Assemblymember Nancy Skinner, D-Berkeley) and Senate Bill 1473 (Senator Loni Hancock, D-Berkeley) will require purchasers of foreclosed homes to give tenants at least 90 days before starting eviction proceedings.

“Tenants are unsuspecting victims in the mortgage and financial crisis,” said Attorney General Harris. “They pay rent on time but may suddenly find themselves forced to move. These bills will give tenants important rights and fair treatment when they live in a rental that is under threat of foreclosure.”

Under the bills, if the tenant has a fixed-term lease, the new owner must honor the lease unless the owner demonstrates that certain exceptions intended to prevent fraudulent leases apply.

Currently, there are incongruities within state law, and between state and federal law, regarding eviction proceedings following a foreclosure. AB 2610 and SB 1473 would correct these confusing laws. All provisions in the bill will remain in effect until December 31, 2019.

“Too often, California tenants are the unwitting victims when a home they are renting is foreclosed on,” said Senator Hancock. “The inconsistency between state and federal law has left renters confused and, at times, misled about their legal protections. This bill provides common sense solutions to help protect California citizens caught in the crossfire of the mortgage foreclosure crisis.”

“The mortgage crisis and resulting foreclosures have directly impacted more than 200,000 California renters in 2010 alone,” said Assemblymember Skinner. “The Renters’ Right Act of 2012 protects families in rental housing by providing basic protections and legal rights in the face of unjust foreclosure-related evictions.”

SB 1473 passed the Senate on a 25 to 13 vote and AB 2610 passed the Assembly on a 54 to 13 vote.

The bills are part of the California Homeowner Bill of Rights. Other portions of the package are being considered in a Joint Legislative Conference Committee, including elements to restrict unnecessary foreclosures and protect the due process rights of borrowers and homeowners.

The California Homeowner Bill of Rights also includes:

DUE PROCESS AND FORECLOSURE REDUCTION ACT: SB 900 (Leno) & AB 278 (Eng). These bills are being considered by a Joint Legislative Conference Committee.

BLIGHT PREVENTION LEGISLATION: AB 2314 (Carter) & SB 1472 (Pavley and DeSaulnier). These bills have passed the Assembly and Senate, respectively, and now will be heard in the other house.

GRAND JURY LEGISLATION: AB 1763 (Davis) & SB 1474 (Hancock). These bills have passed the Assembly and Senate, respectively, and will now be heard in the other house.

AG ENFORCEMENT LEGISLATION: AB 1950 (Davis). This bill passed the Assembly, and will now be heard in the Senate.

For more information on the California Homeowner Bill of Rights, go to www.oag.ca.gov

SACRAMENTO -- Attorney General Kamala D. Harris today announced the Assembly and Senate each passed important components of the California Homeowner Bill of Rights that will help protect homeowners from scams.

The bills enhance the Attorney General’s enforcement powers and allow the Attorney General to use special grand juries to prosecute multi-jurisdictional financial crimes. The Mortgage Fraud Strike Force established by the Attorney General has been investigating and prosecuting a wide range of crimes related to mortgages, foreclosures and real estate.

“California was the epicenter of the mortgage and foreclosure crisis and scammers have been preying on vulnerable citizens who simply want to keep their homes,” said Attorney General Harris. “These bills will aid our efforts to prosecute and convict these criminals.”

These are two of the six bills in the California Homeowner Bill of Rights. Other portions of the package are being considered in a Joint Legislative Conference Committee, including elements to restrict unnecessary foreclosures and protect the due process rights of borrowers and homeowners.

AB 1763 (Assemblymember Mike Davis, D-Los Angeles) and SB 1474 (Senator Loni Hancock, D-Berkeley) would allow the Attorney General to convene a special grand jury to investigate and indict the perpetrators of financial crimes involving victims in multiple jurisdictions. Both bills passed out of their respective houses unanimously with bipartisan support.

The special grand jury would convene in cases involving fraud or theft that occurs in more than one county and where all potential charges are against a single defendant or multiple defendants working together.

Crimes of a financial nature often occur in multiple jurisdictions. Under current law, crimes where the fraud victims are all over the state require separate grand juries and charges filed in each county where the defendant committed the crime. This legislation would provide for the option of a special grand jury that can investigate financial crimes beyond the scope of single-county grand juries.

“The Attorney General is currently engaged in the investigation of significant crimes,” Senator Hancock said. “Unfortunately, county-by-county grand juries do not work well in dealing with large-scale wrongdoing in multiple jurisdictions. With this bill, the Attorney General can investigate multijurisdictional crimes – it will provide protection when Californians need it the most.”

In addition, AB 1950, by Assemblymember Davis, will extend to three years the statute of limitations on mortgage related crimes. The current statute of limitations of one year can make it difficult to prosecute crimes such as the prohibition on charging up front fees for loan modification services. Because the foreclosure process is so protracted, some homeowners may not even realize that they have been the victim of a scam before it is too late for prosecution.

“AB 1950 equips the Attorney General to do her job; to go after the bad actors that have taken advantage of homeowners. It accomplishes this by providing the Attorney General with appropriate time to investigate and prosecute those who prey on California homeowners,” said Assemblymember Mike Davis. The bill passed out of the Assembly on a 46 to 18 vote.

The California Homeowner Bill of Rights also includes:

DUE PROCESS AND FORECLOSURE REDUCTION ACT: SB 900 (Leno) & AB 278 (Eng). These bills are being considered by a Joint Legislative Conference Committee.

BLIGHT PREVENTION LEGISLATION: AB 2314 (Carter) & SB 1472 (Pavley and DeSaulnier). These bills have passed the Assembly and Senate, respectively and now will be heard in the other house.

TENANT PROTECTION LEGISLATION: AB 2610 (Skinner) & SB 1473 (Hancock). These bills will be heard in the Assembly and Senate by the end of the week.

For more information on the California Homeowner Bill of Rights, go to www.oag.ca.gov

TRAVIS AIR FORCE BASE -- Attorney General Kamala D. Harris and Holly Petraeus, Director of the Office of Service Member Affairs at the Consumer Financial Protection Bureau (CFPB), today met with Airmen and their families to discuss the financial difficulties they face, especially as they relate to the foreclosure crisis.

California has the largest population of military members, reservists and veterans and is the epicenter of the foreclosure crisis. Attorney General Harris formed a working group last year to explore scams and other predatory conduct uniquely targeting servicemembers.

Attorney General Harris is proposing the California Homeowner Bill of Rights in order to fix California’s broken mortgage process and extend to all borrowers many of the same reforms included in the recent national mortgage settlement. The legislation builds on the national mortgage settlement, which secured enhanced protections for active-duty and veteran homeowners, in addition to bringing an historic $18 billion in relief to California homeowners and foreclosure victims.

“Our servicemembers, veterans and their families have made tremendous sacrifices for all of us,” said Attorney General Harris. “It is our obligation to do right by them and make sure they have the tools they need to protect their homes, their families and their future.”

“I commend Attorney General Harris’ work to address the unique financial challenges military personnel face,” Petraeus said. “Military homeowners experience frequent moves and deployments, and it’s important that mortgage servicers recognize and respond to their special circumstances. Servicemembers put their lives in jeopardy to serve our country, and in return we owe them strong consumer protections.”

The National Mortgage Settlement protect those in the military by requiring banks to provide specially-trained points of contact to servicemembers and give special consideration for loan modifications and other relief to servicemembers who are required to relocate to a new duty station.

The California Homeowner Bill of Rights would require banks to notify servicemembers of their rights under the Servicemembers Civil Relief Act before filing a foreclosure. Under that Act, servicemembers are eligible for various mortgage-related protections, including a capped interest rate and possible deferment of payments.

Military families are especially vulnerable to mortgage-related abuses for a variety of reasons. Deployments and emergencies lead to unplanned and unique financial difficulties; servicemembers are often victims of marketing preying on their loyalty and patriotism; frequent relocation can make it difficult to sell a home; and foreclosure or other debt can lead to loss of security clearance and position.

FRESNO -- Attorney General Kamala D. Harris today was joined by Fresno County Sheriff Margaret Mims, Merced County Sheriff Mark Pazin, Tulare County Sheriff Bill Wittman, and Fresno Police Chief Jerry Dyer at a press conference in support of the California Homeowner Bill of Rights, which contains law enforcement tools to help prevent blight and other crimes associated with the foreclosure crisis.
Attorney General Harris also presented Attorney General Awards to distinguished officers from the Visalia Police Department, Fresno Police Department, the California Highway Patrol (Madera area), Kings County District Attorney’s Office and the California Department of Corrections and Rehabilitation.

The press conference occurred after at a regional “zone” meeting, where law enforcement leaders discussed common challenges and collaboration. Zone 5 includes law enforcement agencies from Fresno, Kern, Kings, Madera, Mariposa, Merced and Tulare counties.

“As I meet with law enforcement leaders around the state, I repeatedly hear of their frustrations dealing with the aftermath of our foreclosure crisis and crime that is associated with it,” said Attorney General Harris. “I am gratified by the support of these Central Valley law enforcement leaders for the California Homeowner Bill of Rights, and look forward to the public safety enhancements it will bring.”

“Attorney General Harris’ proposed legislation provides increased enforcement capabilities, due process for homeowners, and gives local law enforcement additional tools to avoid blight as a result of empty homes left vacant as a result of foreclosures. I am pleased to be able to join her and support the California Homeowner Bill of Rights,” said Sheriff Margaret Mims of Fresno County.

“All Californian’s should be appreciative of these bills the Attorney General is trying to pass as they will help prevent foreclosure abuses, especially here in Merced where we ranked among some of the nation’s highest foreclosed homes,” Merced Sheriff Mark N. Pazin said.

“As the Sheriff of Tulare County, I have seen firsthand the devastating effects of the mortgage crisis, not only in Tulare County but across the State of California. In Tulare County alone, between 2008 and 2011 there were over 11,000 foreclosures. The California Homeowner Bill of Rights will assist homeowners and law enforcement agencies by providing additional resources and tools to identify and fight a multitude of crimes related to mortgage fraud, real estate fraud, and loan scams. I fully support the California Homeowner Bill of Rights,” Tulare County Sheriff Bill Wittman said.

The California Homeowner Bill of Rights, which would bring transparency and fairness to California’s broken mortgage process, is under consideration in the Legislature and includes proposals to help law enforcement respond to mortgage fraud and to crime associated with the foreclosure crisis.

These bills would empower communities to crack down on blight and the resulting crime, would support law enforcement responses to mortgage fraud by extending the statute of limitations, and would empower the Attorney General to empanel a special grand jury to target multi-jurisdictional financial crimes.

The California Homeowner Bill of Rights will also extend to all borrowers many of the same reforms negotiated for in the recent national mortgage settlement. The legislation includes protections against the dysfunctional “dual-track” foreclosures process, guarantees of a single point of contact for distressed homeowners, and an increase in penalties for robo-signing. The multistate mortgage settlement brought a commitment of up to $18 billion for California homeowners and foreclosure victims from banks.

Foreclosure-related estimates for each county in the zone are:

Fresno County:
Number of foreclosures 2008-2011: 27,837
Estimated amount of California commitment: $311,015,043

Kern County:
Number of foreclosures 2008-2011: 35,893
Estimated amount of California commitment: $374,504,344

Kings County
Number of foreclosures 2008-2011: 2,139
Estimated amount of California commitment: $24,288,347

Madera County
Number of foreclosures 2008-2011: 7,005
Estimated amount of California commitment: $84,307,143

Mariposa County
Number of foreclosures 2008-2011: 238
Estimated amount of California commitment: $6,761,727

Merced County
Number of foreclosures 2008-2011: 18,229
Estimated amount of California commitment: $215,723,069

Tulare County
Number of foreclosures 2008-2011: 11,269
Estimated amount of California commitment: $119,124,870

SACRAMENTO -- Attorney General Kamala D. Harris today testified in support of the California Homeowner Bill of Rights, a package of legislation designed to protect homeowners from unfair practices by banks and mortgage companies and to help families and communities cope with the state’s urgent mortgage and foreclosure crisis.

Attorney General Harris testified at the joint Legislative Conference Committee created to examine two key bills from the Homeowner Bill of Rights. These bills will guarantee a single point of contact for struggling homeowners, penalize the ‘robosigning’ of documents, and restrict so-called “dual track” foreclosures, where borrowers are foreclosed upon even while negotiating with their bank to pay to stay in their homes.

“This Bill of Rights is simply about common sense reform and about bringing transparency for an otherwise confusing and daunting system,” said Attorney General Harris. “It is about hard working people who believe in the American dream.”

Attorney General Harris was joined in testifying by responsible homeowners struggling with their mortgages.

Celeste Singh’s home was sold at auction before she was denied a loan modification. She has tried repeatedly to have her bank modify her loan after a car accident left her with brain damage.

“My home is where my heart is, and my community is where my children and I have laid down our grassroots,” Singh said during her testimony. “I have been an active participant in my community for years. It feels like a death sentence and thousands of Californians know what I'm talking about.”

The Homeowner Bill of Rights builds on the national mortgage settlement and California commitment announced by Attorney General Harris earlier this year. That agreement included common-sense reforms, hammered out through a thoughtful process, but which only apply to the five settling banks and only for a limited time. The bills in the Homeowner Bill of Rights would make these reforms permanent and extend them to all Californians. The bills are authored by Senator Mark Leno and Assembly Member Mike Eng.

The legislation, first introduced at a February 29th press conference, was developed in collaboration with Assembly Speaker John A. Perez, Senate President pro Tem Darrell Steinberg and other members of the legislature. The Conference Committee features three members from each house: Senators Noreen Evans, Ron Calderon and Sam Blakeslee and Assembly Members Mike Eng, Mike Feuer, and Donald Wagner.

California won up to $18 billion in the national mortgage settlement, and has appointed an independent monitor, Professor Katherine Porter, to verify the extent and timeliness of lenders meeting their obligations to California homeowners.

Other bills in the package include:
- BLIGHT PREVENTION LEGISLATION: AB 2314 (Carter) & SB 1472 (Pavley and DeSaulnier)
- TENANT PROTECTION LEGISLATION AB 2610 (Skinner) and SB 1473 (Hancock)
- ENHANCEMENT OF ATTORNEY GENERAL ENFORCEMENT ACT AB 1950 (Davis)
- ATTORNEY GENERAL SPECIAL GRAND JURY ACT AB 1763 (Davis) and SB 1474 (Hancock)

More information on the bills can be found here: www.leginfo.ca.gov

SAN FRANCISCO -- Attorney General Kamala D. Harris today announced two historic settlements with Abbott Laboratories over the illegal off-label marketing of its Depakote drug.

California joined other states and the federal government in a $1.5 billion civil and criminal settlement with Abbott Laboratories. The second largest recovery ever from a pharmaceutical company, this settlement resolves false claims made by Abbott Laboratories to Medicaid and other federal healthcare programs. The second settlement, a $100 million civil consumer protection settlement, is the largest consumer protection settlement ever reached with a pharmaceutical company.

As a result of the settlements, Abbott Laboratories will be restricted from marketing the drug for off-label uses not approved by the U.S. Food and Drug Administration.

“This company put people in harm’s way through the deceptive off-label uses of its drug,” Attorney General Harris said. “Californians should be able to trust the companies that produce pharmaceuticals and the magnitude of this settlement shows the seriousness of the offenses.”

As part of the $1.5 billion settlement, Abbott Laboratories will pay the states and the federal government $800 million in civil damages and penalties to compensate Medicaid, Medicare, and various federal healthcare programs for harm suffered as a result of its conduct. The California gross share recovery is $52 million plus 2.5 percent annual interest, which will be split among various parties, including the U.S. Department of Health Care Services, the whistleblowers the California Department of Health Care Services and the California False Claims Act Trust.

Abbott Laboratories also pled guilty this morning to a violation of the Food, Drug, and Cosmetic Act (FDCA) and agreed to pay $700 million in criminal fines. Further as a condition of the settlement, Abbott Laboratories will enter into a Corporate Integrity Agreement with the United States Department of Health and Human Services, Office of the Inspector General.

“We are pleased that this settlement retrieves scarce Med-Cal funds that should be used for the care of vulnerable Californians,” said California Department of Health Care Services Director Toby Douglas. “Protecting the fiscal integrity of Medi-Cal remains a top priority for this department.”

The $1.5 billion settlement includes 49 states and the District of Columbia and is based on four qui tam cases filed under federal and California false claims statutes. A team appointed by the National Association of Medicaid Fraud Control Units participated in the investigation and conducted the settlement negotiations with Abbott on behalf of the participating states. Team members from the Attorney General Harris’ Bureau of Medi-Cal Fraud and Elder Abuse include Investigative Auditor Martha Valdez, Special Agent Supervisor Cynthia Bentley and Deputy Attorneys General Matt Kilman and Carlotta Hivoral.

The second settlement announced today included 44 other states and the District of Columbia. The $100 million consumer protection settlement included $6.7 million for California, the largest share of any state.

In the complaint filed today with the settlement agreement, the states alleged that Abbott engaged in unfair and deceptive practices when it marketed Depakote for off-label uses. Depakote is approved for treatment of seizure disorders, mania associated with bipolar disorder and prophylaxis of migraines, but the attorneys general alleged Abbott marketed the drug for treating unapproved uses, including schizophrenia, agitated dementia and autism.

As a result of the states’ investigation, Abbott has agreed to significantly change how it markets Depakote and to cease promoting off-label uses.

Under the consumer protection settlement, Abbott Laboratories is:
-Prohibited from making false or misleading claims about Depakote
-Prohibited from promoting Depakote for off-label uses
-Required to ensure financial incentives on sales do not promote off-label uses of Depakote

In addition, for a five-year period Abbott must:
-Limit responses to requests by physicians for non-promotional information about off-label uses of Depakote
-Limit dissemination of reprints of clinical studies relating to off-label uses of Depakote
-Limit use of grants and continued medical education
-Disclose payments to physicians
-Register and disclose clinical trials

Joining California in the consumer protection settlement are the Attorneys General of the District of Columbia and the following states: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia and Wisconsin.

SACRAMENTO -- Attorney General Kamala D. Harris released the following statement upon the announcement that parts of the California Homeowner Bill of Rights will be heard by a Legislative Conference Committee:

“There are more than 500,000 California homeowners in the foreclosure pipeline, and securing for them the protections of the Homeowner Bill of Rights is my central concern. I am sure these reforms will receive thoughtful attention and discussion in the Legislative Conference Committee which is why I support the Assembly Speaker and Senate President pro Tem’s decision to form it. I look forward to working with the Legislative leaders and members of the committee to bring transparency and fairness to our state’s mortgage and foreclosure process.”