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Koster takes heat on “pay-to-play” allegations

Saint Louis, Mo. — Attorney General Chris Koster may have hit his first real speed bump on his quest for the Governor’s Mansion thanks to a New York Times article on a sweeping investigation of state Attorneys General. The piece ties Koster’s decision to halt an investigation into 5-Hour Energy’s false advertising allegations to Koster’s close relationship to the company’s legal firm and their generous donations to his campaign.

The article, penned by Eric Lipton of the New York Times, points to a meeting between Koster and about a dozen other state AG’s in California at a fundraiser hosted by the Democratic Attorneys General Association.

Attorney General Chris Koster
Attorney General Chris Koster

There, Loria Kalani — a lawyer with the firm Dickstein Shapiro, representing 5-Hour Energy — told Koster that she had just been notified that Missouri was now one of the states involved in an investigation into claims of false advertising against her client.

From the NYT article:

“Ms. Kalani’s firm, Dickstein Shapiro, had courted the attorney general at dinners and conferences and with thousands of dollars in campaign contributions. Mr. Koster told Ms. Kalani that he was unaware of the investigation, and he reached for his phone and called his office. By the end of the weekend, he had ordered his staff to pull out of the inquiry, a clear victory for 5-Hour Energy.”

“The quick reversal, confirmed by Mr. Koster and Ms. Kalani, was part of a pattern of successful lobbying of Mr. Koster by the law firm on behalf of clients like Pfizer and AT&T — and evidence of a largely hidden dynamic at work in state attorneys general offices across the country.”

Koster told the NYT that the investigation was dropped in error thanks to a staff member. His office did not respond to requests from House Speaker Tim Jones — a possible candidate to replace Koster in 2016 — who issued a statement condemning the Democratic AG and promising to “investigate these allegations.”

“The thorough investigative work of one of our nation’s most prominent news outlets has exposed what appears to be an egregious violation of the public’s trust perpetuated by Attorney General Koster. Missourians expect and deserve public officials who will defend their rights and, in this case, protect them from the deceptive marketing practices of unscrupulous corporations. Instead they have an Attorney General who apparently makes filling his campaign coffers his top priority rather than fulfilling his oath to the people of Missouri to uphold our laws. I am deeply disturbed by the multiple examples of apparent pay-to-play schemes uncovered by the New York Times, and am currently examining the options we have as a legislative body to further investigate these allegations and ensure that Attorney General Koster is held accountable for his actions.”

Koster’s office responded with a statement from the Democratic AG.

“This Attorney General’s office has consistently protected Missouri consumers from fraud, regardless of the identity of those responsible. Contrary to the inferences contained in today’s New York Times article, this office reviews each case on its merits.  We have taken legal action against Pfizer at least six times and have taken legal action against AT&T at least twice.  Together, these cases have resulted in millions of dollars on behalf of Missouri consumers.   Currently, Missouri is among the 44 states in the country that have not filed suit against 5 Hour Energy.

Today’s article in the New York Times misrepresents the facts, distorting events to create an appearance of impropriety where none exists. The factual explanations provided weeks ago to the New York Times are attached.”

Read the AG’s full correspondence with NYT