Attorney general settlement
A deal between a state attorney general and a company that resolves the state's claims. Money may fund penalties, restitution or programs, not always checks for you.
Also called: state attorney general settlement, AG settlement, multistate settlement
A deal between a state attorney general and a company that resolves the state's claims. Money may fund penalties, restitution or programs, not always checks for you.
What it means
An attorney general settlement resolves a case or investigation that a state attorney general, or a group of them, brought against a company. The attorney general acts for the state and its residents, often under the state's consumer protection law. These cases can end in a court-approved consent judgment. They can also end in an agreement signed without first filing a complaint in court.
Terms vary. A settlement can require the company to change its practices, pay civil penalties to the state, and in some cases pay restitution to consumers. Attorneys general do not represent individual consumers, so you are not a client, and you do not need to hire anyone or opt in.
That makes these settlements different from a class action. Money can go to the state, to programs, or to consumers as restitution. When consumers are paid, the attorney general's office or an administrator announces how.
What it means for you
An attorney general settlement may or may not pay you. Many fund state penalties or programs, and there may be no claim form at all. If consumers are owed money, the attorney general's website will say so and give the official steps. Payment may arrive automatically if the company has your records. Be wary of anyone who offers to "register" you or asks for a fee. You can sign up for your state attorney general's consumer alerts. A state settlement may not end separate private lawsuits over the same conduct, and those have their own rules.
Example
Say a hypothetical online retailer is accused by a state attorney general of adding undisclosed fees. In a settlement, the company agrees to stop the fees and pay a civil penalty to the state. It also sets aside a fund to refund customers who paid them. The attorney general's website announces a claim form for customers in that state. Another state settlement might send all of its money to state programs and create no claim form at all.
FAQ
Not always. Some settlements send money to the state or to programs, and some set aside restitution for consumers. If there is a payout for individuals, the attorney general's office will announce the steps. Never pay a fee to claim one.
No. A state attorney general sues on behalf of the state and its residents, so people do not have to join or opt out. Attorneys general do not represent individual consumers. A separate class action by private lawyers can exist alongside one.
Related terms
- National Association of Attorneys General: consumer protection 101
- National Association of Attorneys General: data breaches and multistate settlements
Updated Oct 18, 2026. Plain-English definitions for general information — not legal or tax advice.