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 Cy Pres Awards and Grants

 DOCUMENTS

 SEE HERE for the National Mortgage Settlement Request for Grant Proposals and Application

The Washington State Attorney General’s Office's Consumer Protection Division enforces the state’s Consumer Protection Act. The resolution of lawsuits brought by this division often recovers costs and fees incurred in bringing the action, restitution for consumers and civil penalties which go to the general fund.

The Attorney General attempts to restore direct restitution to consumers wherever it is reasonably feasible to do so. However, sometimes it is impossible to identify each consumer who was harmed, or the amount of money available for each affected consumer makes it impractical to distribute money directly to consumers. In these situations, the courts might allow a "cy pres" distribution, which means that instead of individual payments, an indirect use will be allowed. Cy pres means "as near as possible" and requires that the funds be distributed in a manner that benefits the category of consumers harmed by the illegal conduct. Each court order will have specific language setting forth the restrictions on use, but the language must match the allegations in the complaint and describe what category of consumers was harmed. Therefore, grants will be awarded only to applicants whose programs match the specific type of harm addressed by the action.

In 2009, the legislature passed a bill requiring the Attorney General's Office to: "annually report to the fiscal committees of the legislature all new cy pres awards and settlements and all new accounts, disclosing their intended uses, balances, the nature of the claim or account, proposals, and intended time frames for the expenditure of each amount. The report shall be distributed electronically and posted on the attorney general's web site. The report shall not be printed on paper or distributed physically."

Status of Cy Pres Awards and Grants for Fiscal Year 2013 (July 1, 2014- June 30, 2015)
Page last updated: December 18, 2014


 Case Name:  Merck & Co. (Vytorin)  
 Cause No.: 09-2-01728-7
 Court: Thurston County Superior Court
 Date Filed: 9/16/2009

 

 Nature of Claim: Misrepresentation and failure to substantiate claims
 Court-Ordered Use of Funds: Cy pres for use on programs/projects directed at cardiovascular health
 Proposal Received/Amount Requested: Boys & Girls Clubs Washington State Association $58,500 ($152,500 requested; awarded combination Vytorin and Celebrex fund)
     Proposal Status: Accepted
 Proposal Received/Amount Requested: Neighborcare Health $19,119.50 ($19,460 requested; awarded combination Vytorin and Celebrex fund)
      Proposal Status: Accepted
 Distribution Timeframe: Completed May 2012
 Beginning Account Balance: $ 77,130
 Grant Amount Awarded: $ 77,130
 Account Balance: $ 0

 



 Case Name:  Countrywide  
 Cause No.: 09-2-01690-8
 Court: Thurston County Superior Court
 Date Filed: 7/10/2009

 

 Nature of Claim: Predatory Lending
 Court-Ordered Use of Funds: Foreclosure Relief mitigation
 Proposal Received/Amount Requested: Washington State Bar Association ($320,000)
     Proposal Status: Accepted
 Proposal Received/Amount Requested: Washington State Housing Finance Commission ($595,000)
     Proposal Status: Accepted
 Proposal Received/Amount Requested: North Carolina Commissioner of Banks ($10,000)
      Proposal Status: Accepted
 Distribution Timeframe: Completed February 2010
 Beginning Account Balance: $ 925,000
Grant Funds Unused/Returned: $26,615.38 - March 2014
Interest accrued: $26.71
Grant Recipient/Amount Awarded:   El Centro de la Raza ($26.642.09)
 Account Balance: $ 0

 



 Case Name:  Pfizer (Geodon)  
 Cause No.: 09-2-33085-9 SEA
 Court: King County Superior Court
 Date Filed: 9/9/2009

 

 Nature of Claim: Marketing of off-label uses
 Court-Ordered Use of Funds: For use on programs directed at mental health
 Proposal Received/Amount Requested: Boys & Girls Clubs WA State Association/Youth Mental Health Initiative programs ($140,300)
      Proposal Status: Accepted
 Proposal Received/Amount Requested: United Way of King County/King County Mental Health Crisis Respite Program($363,000)
      Proposal Status: Accepted
 Proposal Received/Amount Requested: Valley Cities Counseling and Consultation/Mental Health Recovery in Action project ($86,000)
      Proposal Status: Accepted
 Proposal Received/Amount Requested: Seattle Community Law Center/Disabled Homeless Advocacy Project ($116,000)
      Proposal Status: Accepted
 Proposal Received/Amount Requested: Snohomish County Human Services/Chemical Dependency Service Components program ($84,700)
      Proposal Status: Accepted
 Distribution Timeframe: Completed March 2011
 Beginning Account Balance: $ 787,823
 Grant Amounts Awarded: $ 790,000
 Account Balance: $ 0

 


 

  Case Name:  TJX  
  Cause No.: 09-2-10571-3
  Court: Thurston County Superior Court
  Date Filed: 6/25/2009

 

 Nature of Claim: Failure to safeguard credit card information
 Court-Ordered Use of Funds: Consumer education directed at data security protection
 Proposal Received/Amount Requested: Pierce County Sheriff's Department ($75,810.10)
      Proposal Status: Accepted
 Distribution Timeframe: Completed December 2011
 Beginning Account Balance: $ 75,480.37
 Grant Amount Awarded: $ 75,810.10
 Account Balance: $ 0

 


 

 Case Name:  The Dannon Company, Inc.
 Cause No.: 10-2-43197-7
 Court: King County Superior Court
 Date Filed: 12/7/2010

 

 Nature of Claim: Marketing tactics and representing that Activia and DanActive can prevent, treat, cure or mitigate disease.
 Court-Ordered Use of Funds:
Consumer education or to support programs connected to nutrition, diagnosis and treatment of gastrointestinal diseases, enhancement of immune system function.
 Proposal Received/Amount Requested: Crohn's & Colitis Foundation of America ($400,000.73)
     Proposal Status: Accepted
 Proposal Received/Amount Requested: Hopelink ($13,600)
      Proposal Status: Accepted
 Distribution Timeframe:  Completed June 2011
 Beginning Account Balance: $ 413,437.50
 Grant Amount Awarded: $ 413,600.73
 Account Balance: $ 0

 


 

 Case Name:  Mattel/Fisher Price  
 Cause No.: 08-2-42789-7
 Court: King County Superior Court
 Date Filed: 12/15/2008

 

 Nature of Claim: The manufacture, distribution, and/or introduction into commerce of children's products containing excessive amounts of lead in or into Washington.
 Court-Ordered Use of Funds:  For use to educate the public about issues related to toy safety.
 Proposal Received/Amount Requested: Washington State Department of Ecology ($168,000)
      Proposal Status: Accepted
 Proposal Received/Amount Requested: Washington Toxics Coalition ($49,000)
      Proposal Status: Accepted
 Proposal Received/Amount Requested: Washington State Department of Health ($25,224)
      Proposal Status: Accepted
 Distribution Timeframe: Completed December 2011
 Beginning Account Balance: $ 242,800
 Grant Amount Awarded: $242,224
 Account Balance: $ 0

  



 Case Name:  Wells Fargo/Wachovia  
 Cause No.: 10-2-14624-1
 Court: Pierce County Superior Court
 Date Filed: 11/02/2010

 

 Nature of Claim: "Pick-A-Pay" loans offered by Wachovia and Golden West/World Savings Bank exposed borrowers to substantial economic risks that weren't adequately disclosed. Wells Fargo acquired the unfair loans during bank takeover.
 Court-Ordered Use of Funds: Assist with the State's efforts to prevent or mitigate foreclosures and to prevent mortgage or loan modification fraud.
 Proposal Received/Amount Requested: Washington State Bar Foundation ($1,017,051)
      Proposal Status: Accepted
 Proposal Received/Amount Requested: Washington State Housing Finance Commission ($550,000)
      Proposal Status: Accepted
 Proposal Received/Amount Requested: University Legal Assistance - Gonzaga University School of Law ($30,000)
      Proposal Status: Accepted
 Proposal Received/Amount Requested: Seattle University School of Law ($31,211.30)
      Proposal Status: Accepted
 Distribution Timeframe: Completed December 2011
 Beginning Account Balance: $ 1,625,716.00
 Grant Amount Awarded: $ 1,628,262.30
 Account Balance: $ 0

 



 Case Name:  GlaxoSmithKline LLC (Cidra)
 Cause No.: 11-2-21739-6
 Court: King County Superior Court
 Date Filed: 06/23/2011

 

 Nature of Claim: Compliance with Consumer Protection Act standards in pharmaceutical and medicine manufacturing of Cidra.
 Court-Ordered Use of Funds: Medical and health care purposes, programs, and projects including but not limited to delivery of services, research and/or education.
 Grant Recipient/Amount Awarded: Confederated Tribes of the Chehalis Reservation ($124,061)
 Grant Recipient/Amount Awarded: Community Health Partners ($188,949.20)
 Grant Recipient/Amount Awarded: YouthCare ($150,040)
  Grant Recipient/Amount Awarded:  Prescription Drug Assistance Foundation ($50,000)
 Grant Recipient/Amount Awarded: United Way of King County ($110,000)
 Grant Recipient/Amount Awarded: : Washington Health Foundation ($55,974)

 Legislature directed use of funds/Amount awarded:

Washington State Health Care Authority is directed to enter an interagency agreement with the AGO to use $302,000 from the GlaxoSmithKline cy pres settlement to cover the state share of costs associated with administering and distributing $144 million of federal incentive payments to physicians, hospitals, clinics, and other Medicaid providers across the state. The incentive payments will assist medical practices install and make effective use of electronic health records.
 Distribution Timeframe Completed May 2012
 Beginning Account Balance: $ 981,024.00
Grant Funds Unused/Returned:
$124,061.00 - April 2014
Interest accrued: $102.06
Grant Recipient/Amount Awarded:  Swedish Edmonds Mental Health ($4,061)
Grant Recipient/Amount Awarded:  Yakima Valley Farm Workers Clinic ($100,422.06)
Grant Recipient/Amount Awarded:  Nisqually Indian Tribe ($19,680)
 Account Balance: $ 0

 


 

 Case Name:  AstraZeneca Pharmaceuticals LP  
 Cause No.: 11-2-09386-7SEA
 Court: King County Superior Court
 Date Filed: 03/10/2011

 

 Nature of Claim: Compliance with Consumer Protection Act standards in pharmaceutical and medicine marketing.
 Court-Ordered Use of Funds:  For use to facilitate programs directed at mental health, and/or to facilitate programs directed at the proper use of prescription drugs by the medical community and consumers.
 Legislation: Pursuant to the terms of 2ESHB 1087
 Directed Use of Funds/Amount Awarded: Washington State Health Care Authority ($870,000)
 
$300,000 - solely for the prescriptive practices improvement collaborative focusing upon atypical antipsychotics and other medications used in the treatment of mental illnesses among adults.

$570,000 - solely for continued operation of the partnership access line for child mental health consultations.
 Directed use of funds/Amount awarded: Washington State Department of Social and Health Services ($700,000) solely for the University of Washington's evidence-based practice institute which supports the identification, evaluation, and implementation of evidence-based or promising practices for serving children and youth with mental health disorders.
 Distribution Timeframe: by July 2013
 Beginning Account Balance: $1,591,991
 Grant Amount Awarded: $1,570,000
 Account Balance: $21,991.00

 


 

 Case Name:  Abbott Laboratories  
 Cause No.: 12-2-16319-7
 Court: King County Superior Court
 Date filed: 5/7/2012

 

 Nature of Claim: Bypassing regulatory process to engage in promotion of off-label uses for Depakote.
 Court-Ordered Use of Funds:  Direct treatment, medication, or counseling to persons suffering from schizophrenia, dementia or autism. 
 Grant Recipient/Amount Awarded: Washington Health Foundation ($180,000)
 Grant Recipient/Amount Awarded: Alzheimer's Association of Western & Central Washington State ($174,075)
 Grant Recipient/Amount Awarded: The Arc of Snohomish County ($150,000)
 Grant Recipient/Amount Awarded: United Way of King County ($220,000)
 Grant Recipient/Amount Awarded: Open Doors for Multicultural Families ($372,167)
 Grant Recipient/Amount Awarded:    Encompass Northwest ($27,456)
 Grant Recipient/Amount Awarded:   Yakima Valley Memorial Hospital Charitable Foundation ($70,020)
 Grant Recipient/Amount Awarded:   University of Washington Autism Center ($539,428)
 Grant Recipient/Amount Awarded: University of Washington Medical-Legal Partnership ($268,285)
 Distribution Timeframe: Completed January 2013
 Beginning Account Balance: $ 2,001,431
 Grant Amount Awarded: $2,001,431
 Account Balance: $ 0

 


 Case Name:
 Skechers USA, Inc.  
 Cause No.:
12-2-17364-8
 Court:
King County Superior Court
 Date Filed:
5/16/2012

 

 Nature of Claim: Unsubstantiated claims about the health benefits of its "rocker-bottom" shoe products.
 Court-Ordered Use of Funds:  For projects that improve physical fitness, proper nutrition, or reduction of obesity, including health-related research and/or education. 
 Grant Recipient/Amount Awarded: Green Plate Special ($18,400)
 Grant Recipient/Amount Awarded: Associated Recreation Council/Seattle Parks and Recreation ($14,500)
 Grant Recipient/Amount Awarded:   Jefferson County Farmers Market ($13,985)
 Grant Recipient/Amount Awarded:  All Girl Everything Ultimate Program/Associated Recreation Council ($8,862)
 Distribution Timeframe:
Completed January 2013
 Beginning Account Balance: $ 55,747.80
Grant Funds Unused/Returned: $14,500 - April 2014
Interest accrued:      $10.97
Grant Recipient/Amount Awarded:  Asia Pacific Cultural Center ($14,511.77)
 Account Balance: $   0

 


 Case Name:  Janssen Pharmaceuticals, Inc.
 Cause No.: 12-2-28976-0
 Court: King County Superior Court
 Date Filed: 8/30/2012

 

 Nature of Claim: Promoting Risperdal for uses not shown to be safe or effective; failing to adequately disclose risks associated with use; off-label marketing.
 Court-Ordered Use of Funds:  "[F]or the benefit of Washington residents who suffer from dementia, schizophrenia, bipolar disorder, or other conditions for which Risperdal was commonly prescribed, or for the treatment of diabetes...."
 Grant Recipient/Amount Awarded: Neighborcare Health ($140,895)
 Grant Recipient/Amount Awarded: Associated Recreation Council ($2,500)
 Grant Recipient/Amount Awarded: Center for MultiCultural Health ($77,880)
 Grant Recipient/Amount Awarded: Washington Health Foundation ($366,974)
 Grant Recipient/Amount Awarded: Valley Cities Counseling and Consultation ($292,711)
 Grant Recipient/Amount Awarded: Multi-Service Center ($521,747)
 Grant Recipient/Amount Awarded: Seattle Children's Hospital ($762,206)
 Grant Recipient/Amount Awarded:   King County Regional Support Network ($1,670,915)
 Grant Recipient/Amount Awarded: United Way of King County ($220,000)
 Grant Recipient/Amount Awarded: Washington State University - Psychology Dept. ($206,103)
 Grant Recipient/Amount Awarded: Washington State University - Health Policy & Administration Dept. ($340,288)
 Distribution Timeframe: Completed April 2013
 Beginning Account Balance: $ 4,602,219
 Grant Funds Unused/Returned: $ 30,644.04 - September 2013
Interest accrued: $4,922.11
Grant Recipient/Amount Awarded: United Way of King County ($35,566.15)
 Account Balance: $ 0

 


 

 Case Name:  National Mortgage Settlement State Implementation  
 Cause No.: 12-0361
 Court: U.S. District & Bankruptcy Courts for the District of Columbia
 Date Filed: 4/04/2012
 Proposals Received:  www.atg.wa.gov/NM-Grant-Proposals.aspx

 

 Nature of Claim:  Settlement between the state attorneys general and the five leading bank mortgage servicers requiring comprehensive reforms of mortgage loan servicing.  
 Court-Ordered Use of Funds:  For projects to help Washington homeowners avoid preventable foreclosures or to ameliorate the effects of the foreclosure crisis. 
 Amount of Money To Be Awarded as Grants: $43,800,000
 Grant Recipient/Amount Awarded: Aberdeen Neighborhood Housing Services, Inc. ($2,000,000)
 Grant Recipient/Amount Awarded: Catholic Charities Housing Services ($393,563)
 Grant Recipient/Amount Awarded: El Centro de la Raza ($600,000)
 Grant Recipient/Amount Awarded: HomeSight ($2,145,800)
 Grant Recipient/Amount Awarded: Homestead Community Land Trust ($1,000,000)
 Grant Recipient/Amount Awarded: Legal Foundation of Washington ($13,053,044)
 Grant Recipient/Amount Awarded: Lifelong AIDS Alliance ($2,000,000)
 Grant Recipient/Amount Awarded: Resolution Washington ($2,137,700)
 Grant Recipient/Amount Awarded: Spokane Neighborhood Action Partners ($3,074,354)
 Grant Recipient/Amount Awarded: City of Tacoma/Tacoma Community Redevelopment Authority ($3,860,000)
 Grant Recipient/Amount Awarded: Washington Homeownership Resource Center ($950,000)
 Grant Recipient/Amount Awarded: Washington State Housing Finance Commission ($12,273,689)
 Grant Recipient/Amount Awarded: White Center Community Development Association ($311,850)
 Grants Awarded:  August 2012 
 Grant Amount Awarded: $ 43,800,000
 Account Balance: $ 0

 


 Case Name:  GlaxoSmithKline, LLC (Avandia)
 Cause No.: 12-2-37029-0
 Court: King County Superior Court
 Date Filed: 11/15/2012

 

 Nature of Claim: Misrepresentation to the public and the FDA regarding the safety of Avandia; failing to disclose studies associating Avandia with increased heart risk.
 Court-Ordered Use of Funds:  "...funds shall be distributed for the benefit of Washington residents who have type 2 diabetes...."
 Grant Recipient/Amount Awarded: NATIVE Project ($33,000)
 Grant Recipient/Amount Awarded: Neighborcare Health ($160,268)
 Grant Recipient/Amount Awarded: Yakima Valley Memorial Hospital Charitable Foundation ($202,800)
 Grant Recipient/Amount Awarded: PeaceHealth St. Joseph's Medical Center Nutrition & Diabetes Clinic ($35,745)
 Grant Recipient/Amount Awarded:   The Free Clinic of Southwest Washington ($17,422)
 Grant Recipient/Amount Awarded:   Peninsula Community Health Services ($138,775)
 Grant Recipient/Amount Awarded:   Group Health Cooperative - Group Health Research Institute ($1,194,491)
 Grant Recipient/Amount Awarded: Kadlec Regional Medical Center ($188,000)
 Grant Recipient/Amount Awarded:   Senior Services ($194,737)
 Grant Recipient/Amount Awarded: Peace Island Medical Center ($10,964)
 Distribution Timeframe: Completed June 2013
 Beginning Account Balance: $ 2,177,201.80
 Grant Amount Awarded: $ 2,176,202.00
 Account Balance: $ 999.80

 


 

 Case Name:  Pfizer Inc. (Lyrica/Zyvox)
 Cause No.: 12-2-39485-7
 Court: King County Superior Court
 Date Filed: 12/12/2012

 

 Nature of Claim: Lacking scientific evidence to make superiority claims for both Lyrica and Zyvox; engaging in off-label marketing for Lyrica.
 Court-Ordered Use of Funds:  "...funds shall be distributed as grants to be used to provide direct treatment, medication, or counseling to Washington residents suffering from chronic pain, including chronic pain associated with diabetes; or for research regarding the treatment or management of chronic pain..."  
 Grant Recipient/Amount Awarded: University of Washington - Alcohol & Drug Abuse Institute ($110,299)
 Grant Recipient/Amount Awarded:   Seattle Indian Health Board ($138,721)
 Grant Recipient/Amount Awarded:   WA Department of Social & Health Services - Aging and Long-Term Support Administration ($353,096)
Grant Recipient/Amount Awarded:   Valley View Health Center (Lewis County Community Health Services) ($89,044)
Grant Recipient/Amount Awarded: Olympic Area Agency on Aging ($182,525)
Grant Recipient/Amount Awarded:   Interfaith Community Health Center ($70,230)
Grant Recipient/Amount Awarded: Battle Ground Healthcare ($184,561)
 Distribution Timeframe: Completed September 2013
 Beginning Account Balance: $ 1,128,476.04
 Grant Amount Awarded: $ 1,128,476.00
 Account Balance: $ .04

 



 Case Name:  RealNetworks, Inc.
 Cause No.: 12-2-18633-2
 Court: King County Superior Court
 Date Filed: 05/24/2012

 

 Nature of Claim: Unauthorized subscription through "free trial" service automatically billed to consumers
 Court-Ordered Use of Funds:  "...funds for consumer education purposes relating to Internet or mobile commerce; Internet or mobile security in commercial transactions, or Internet or mobile privacy, or for projects that enhance Internet or mobile data security, or Internet or mobile privacy..."  
Grant Recipient/Amount Awarded: AARP Washington ($500,000)
 Distribution Timeframe:  Completed December 2013
 Beginning Account Balance: $ 500,000
 Grant Amount Awarded: $ 500,000
 Account Balance: $ 0

 

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