Eight more states have joined a lawsuit against part of the Dodd-Frank financial reform act, arguing that the act undermines their financial stability.
A judge for the United States District Court for the District of Columbia Tuesday accepted the plaintiffs’ motion to amend the complaint to include the eight new states. The new states are Alabama, Georgia, Kansas, Montana, Nebraska, Ohio, Texas, and West Virginia. They join Michigan, Oklahoma, and South Carolina, which launched the suit in September 2012.
“Dodd-Frank … gives the federal government the power to pick winners and losers, putting the state of Georgia’s financial assets at risk,” said Georgia’s Attorney General Samuel Olens in a statement. The states filed to join the lawsuit last week.
Dodd-Frank came as a response to the financial collapse in 2008; the law seeks to prevent a similar collapse from reoccurring by regulating the financial sector.