Yes, a state can stay out of a multistate government settlement. A multistate government settlement is a legal deal negotiated by a group of state attorneys general against the same defendant.
A state that does not sign is not bound. This choice matters for residents. Relief often flows only to people in states that joined.
Official resources:
- Read the official notice from Ca — Use this primary source to verify the official announcement.
- Read the official notice from Nv — Use this primary source to verify the official announcement.
Table of Contents
- Why states can stay out
- What partial participation looks like
- Can a state reject one deal and seek another?
- What to do if your state did not join
Why states can stay out
The National Association of Attorneys General explains that these groups are voluntary. They can include only a few states or almost every state.
The same Association reports that each attorney general holds separate sovereign power. Settlements are typically filed by each participating state. A state becomes bound when its own office joins and files.
What partial participation looks like
Partial participation is normal. The District of Columbia Attorney General's office reported that 39 attorneys general joined a $1.85 billion Navient deal with $1.7 billion in debt cancellation plus $95 million in restitution.
Regulatory Oversight identified eleven nonparticipants in that resolution. They were Alabama, Alaska, Idaho, Montana, New Hampshire, and North Dakota. Oklahoma, South Dakota, Texas, Utah, and Wyoming also stayed out.
Can a state reject one deal and seek another?
Yes. A state can reject a national deal and pursue its own case. Oklahoma's attorney general announced via News9 that the state rejected the national opioid-distributor deal as short-changing Oklahoma, then separately settled with McKesson, Cardinal Health, and AmerisourceBergen for more than $250 million. California took a separate path in 23andMe litigation. California Attorney General Rob Bonta pursued a $6 million deal with Chrome Holding Co.
after 42 other attorneys general reached a separate $18 million deal. HIPAA Journal reported the 42-state deal addressed alleged cybersecurity failures affecting 6.9 million customers, with payment to participating states only. Full participation sometimes happens, but it still requires each state. Nevada Attorney General Aaron D. Ford reported the $7.4 billion Purdue Pharma and Sackler deal took effect only after 55 attorneys general for all eligible states and territories signed on.
What to do if your state did not join
Staying out can limit relief for residents. JD Supra and Troutman Pepper Locke reported that borrowers in nonparticipating Navient states were not eligible under that deal.
Do not assume national news means you qualify. Take these quick checks: Check your attorney general's press page before assuming you qualify.
- Find your attorney general's press release for the defendant name.
- Read the eligibility section for a list of included states.
- Look for a separate state settlement, claim form, or deadline.
- Save account statements, notices, and payment records.