In The News

West Virginia Supreme Court Limits the Attorney General's Power

6/8/2005

On June 8, 2005, John Tinney and Tom Goodwin, of the law firm Goodwin & Goodwin, LLC, appeared before the West Virginia Supreme Court on behalf of ten Wall Street investment banks. They asserted that the West Virginia Attorney General did not have the power or authority to prosecute an action under the West Virginia Consumer Credit and Protection Act ("WVCCPA") based on conduct that is ancillary to the general business of buying and selling securities. On July 7, 2005, the Supreme Court agreed, holding that the WVCCPA "is essentially designed to protect consumers in the relatively common cash and credit transactions in which they engage on a regular basis," and that the WV Attorney General had no power to bring such an action under the statute. See, State ex rel. McGraw v. Bear, Sterns & Co., Inc., 2005 L 1571749 (7/7/05, W.Va.).

Inasmuch as the West Virginia Attorney General has increasingly relied upon the WVCCPA in a wide array of arenas, the importance of this decision cannot be overstated.