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Challenge Labor’s Persuader Rule

Rutledge Seeks to Challenge Labor’s Persuader Rule

Tue, May 10, 2016

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge is leading a group of 10 attorneys general today in filing a motion to intervene in a Texas federal district court case challenging the U.S. Department of Labor’s (DOL) Persuader Advice Exemption Rule.

The DOL’s new rule, which is a complete reversal of how the Department has operated for half a century, forces disclosure of confidential information, communication and relationships between small businesses and their outside counsel in labor relations matters. Plaintiffs are seeking a preliminary injunction of the rule.

“Despite strong opposition, the Labor Department has moved forward with this rule that only applies to employer-side labor lawyers, not union-side lawyers,” said Attorney General Rutledge. “This rule is a dangerous example of putting special interests — in this case, labor unions — before the common good and the need to grow jobs. That is why today, I am joining with Texas Attorney General Ken Paxton and others in an effort to intervene in this case to try and stop this rule from harming job creators across the country.”

The intervention request was filed in National Federation of Independent Business v. Perez.

In the brief, the attorneys general write, “The States’ sovereign interest in regulating its legal profession, and preserving its cornerstone element of confidentiality, is directly related to the Plaintiffs’ claims in this case. If DOL’s new Interpretation and Final Rule is allowed to stand, the federal government may be permitted, without Congressional authorization, to invade virtually any arena of law practice, threaten or preempt state regulations, and alter the longstanding notions of privacy and confidentiality that are hallmarks of the legal profession.”

Rutledge has been vocal in her concern and opposition to this rule. Arkansas and 12 others states sent a letter to the U.S. Office of Management and Budget voicing opposition to the proposal earlier this year. The attorneys general believed the rule would place undue burdens on small businesses, which would be singled out under the rule.

In April, Rutledge led a group of attorneys general in filing an amicus brief in Arkansas federal district court urging the judge to grant the plaintiffs’ motion for a preliminary injunction of the rule. The brief was also filed in a similar case in Minnesota federal district court.

Rutledge and Paxton are co-leading, and they are joined in the intervention request by attorneys general from Alabama, Indiana, Michigan, Oklahoma, South Carolina, Utah, West Virginia and Wisconsin.

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1st Rutledge Regulatory Roundtable

Rutledge Holds 1st Rutledge Regulatory Roundtable

Tue, May 10, 2016

HEBER SPRINGS – Arkansas Attorney General Leslie Rutledge today held her first Rutledge Regulatory Roundtable in Heber Springs with local business leaders to listen to their concerns about regulations, specifically those in the agriculture industry, and discuss local issues. Like last year, Rutledge intends to travel the State holding a series of roundtables to hear directly about state and federal regulations impacting Arkansans.

“Face-to-face conversations can lead to real solutions,” said Attorney General Rutledge. “As I have traveled Arkansas, I have learned exactly what Arkansans want and expect from government. First, people want government to get out of the way. Second – and just as important – they want the decisions that leaders make to be based on science and data, not politics. Rutledge Roundtables give Arkansans an avenue to share their concerns and open a direct line of communication between the people and their government.”

A regulatory roundtable will also be held today in Searcy.

Last year, Rutledge hosted 85 roundtables across Arkansas, including one in all 75 counties, with more than 700 participants.

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Olympus America to Resolve Anti-Kickback Violations

Settlement Reached with Olympus America to Resolve Anti-Kickback Violations

Thu, May 5, 2016

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge has reached a settlement agreement with Olympus America Inc., a Pennsylvania-based health care equipment supplier. Olympus has agreed to pay $306 million to resolve allegations of anti-kickback violations.

Rutledge joined 49 other states and the District of Columbia in resolving allegations that Olympus and certain subsidiaries paid illegal kickbacks to health care providers. The lawsuit alleged that Olympus used improper financial incentives to encourage doctors and hospital executives to buy a wide array of its endoscopes and other surgical equipment to increase sales and gain market share.

As part of the settlement, Arkansas’s Medicaid Program and the Medicaid Program Trust Fund will receive over $1 million.

“Arkansas’s health care providers should make decisions on medical devices based strictly on need, cost and value,” said Attorney General Rutledge. “These choices should not be based on illegal kickbacks that sway doctors and hospitals with lavish vacations and free items. Patients deserve access to good, affordable care, not inflated prices based on bad deals.”

A National Association of Medicaid Fraud Control Units Team participated in the investigation and conducted the settlement negotiations with Olympus on behalf of the states and included representatives from the Offices of the Attorneys General for the states of California, Delaware, Indiana, New York, Virginia, and the District of Columbia.

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$49 Million in Tobacco Settlement Funds

Rutledge: State Receives $49 Million in Tobacco Settlement Funds

Wed, May 4, 2016

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge has secured the 2016 share of proceeds from the 1998 Master Settlement Agreement (MSA) with tobacco companies. In 1998, 46 states and numerous other jurisdictions entered into a historic, multibillion dollar agreement to settle consumer protection lawsuits filed by the states for the costs that they had incurred for treating the negative health effects of smoking.

“This settlement was entered into years ago, but it is critical that I continue to enforce the terms of the agreement with the various tobacco companies,” said Attorney General Rutledge. “This money will be used by the State to improve the overall health of Arkansas residents, fund smoking cessation programs and conduct health care research. A large portion of this money will also go to help fund the Arkansas Medicaid program, which is vital for some of our state’s families and children.”

This year’s disbursement of $49,659,216 brings the total amount received since 2001 to fund various public health programs in Arkansas to $896,732,626.

This agreement, referred to as the MSA, imposed health-related and advertising restrictions on tobacco companies. In addition, the MSA requires the settling manufacturers to make annual payments to the settling states. Arkansas received about $1.6 billion from the settlement, a portion of which is paid yearly by the settling tobacco companies.

The Attorney General is charged with enforcing the tobacco statutes that were enacted pursuant to the MSA. This enforcement includes operation of a certification process for tobacco wholesalers and manufacturers, ongoing quarterly and annual reporting, maintaining an Approved-For-Sale Directory, conducting audits, collection of escrow amounts and investigation or even litigation should violations of the tobacco statutes occur.

In 2000, Arkansas voters created the Tobacco Settlement Act, which governs how the funds received under the settlement are used. MSA payments are placed into the Tobacco Settlement Program Fund for later distribution to the programs supported by the settlement payments.

A number of programs are supported through the fund, including the Arkansas Biosciences Institute, an agricultural and medical research consortium; the Medicaid Expansion Program, which provides Medicaid coverage for pregnant women and increases hospital benefits for Medicaid beneficiaries; the Prevention and Cessation Program, which aims to reduce tobacco use; and the Targeted State Needs Program, which includes support for public health programs for minorities, older Arkansans and residents of rural areas and the Delta.

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Rebate Program Reimbursements

Settlement Reached to Resolve Rebate Program Reimbursements

Fri, Apr 29, 2016

LITTLE ROCK – Arkansas Attorney General Leslie Rutledge has reached a settlement agreement with Wyeth, a Delaware pharmaceutical corporation with its headquarters in Madison, New Jersey. Wyeth is a subsidiary of Pfizer Inc. Wyeth and Pfizer have agreed to pay a total $784.6 million to the federal and the individual states’ Medicaid programs.

Rutledge joined 34 other states and the District of Columbia in resolving allegations that Wyeth knowingly underpaid rebates owed under the Medicaid Drug Rebate Program for the sales of Protonix Oral and Protonix IV between 2001 and 2006.

“Arkansas’s Medicaid Program and the Medicaid Program Trust Fund will receive over $3 million from the multi-state settlement,” said Attorney General Rutledge. “The unacceptable actions of this pharmaceutical company put additional financial stress on the Medicaid program by not providing the agreed upon ‘best price’ rebate.”

The Medicaid Drug Rebate Program requires participating pharmaceutical manufacturers to pay quarterly rebates to state Medicaid programs for each of its drugs sold to pharmacies that were reimbursed by Medicaid. The quarterly rebate was determined from each pharmaceutical manufacturer’s reported “best price,” or the lowest price for which it sold a covered drug in a particular quarter.

The settlement stems from two whistleblower lawsuits, U.S., al., ex rel. Kieff v. Wyeth Pharmaceuticals, Inc. and U.S., et al., ex rel. William St. John LaCorte v. Wyeth, which were filed in the U.S. District Court for the District of Massachusetts. The lawsuits alleged that Wyeth bundled medications but failed to properly report the sales to the Medicaid Drug Rebate Program, therefore underpaid Medicaid Drug Rebates for the two medications.

The state settlements were negotiated by attorneys general in Indiana, Massachusetts, New York and North Carolina, working with the U.S. Attorney’s Office for the District of Massachusetts, the U.S. Department of Health and Human Services Office of Inspector General, and the U.S. Department of Justice.

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Arkansas Supreme Court’s Appeals on Wheels

Rutledge Participates in Arkansas Supreme Court’s Appeals on Wheels

Thu, Apr 28, 2016

BATESVILLE – Arkansas Attorney General Leslie Rutledge today, in her hometown, participated in the Arkansas Supreme Court’s Appeals on Wheels. Appeals on Wheels is a Supreme Court outreach program designed to educate students about their state government. Rutledge conducted the oral argument in Robert R. Friar v. State.

“Appeals on Wheels is a wonderful program that allows Arkansans to watch oral arguments in person and learn more about the judiciary branch and the appellate process,” said Attorney General Rutledge. “It was an honor for me to appear before the state’s highest court and to argue this case in my hometown of Batesville. I commend the justices for continuing this important program, and I hope more Arkansans will take advantage of witnessing this process in the future.”

Twice a year, the Court travels the state to hold oral argument outside Little Rock. Local students from middle school through college are invited to attend an oral argument and are well prepared to watch the proceedings, having previously received facts about the case to be argued.

Amendment 80 to the Arkansas Constitution, adopted by a vote of the people in 2000, provides that the Supreme Court may meet at such times and places as designated by the court.

Rutledge, a native of Batesville, attended Southside Public Schools and was sworn in as an attorney by her father, then a circuit judge, Keith Rutledge on Aug. 27, 2001, at the Independence County Courthouse in Batesville.

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