Introduction
Imagine a company overcharges you, misleads you, or cuts corners on something that affects your health or your wallet, and then a court tells you that you can't sue because the company happens to hold a state license. That was the reality for consumers in Michigan for more than two decades. Last week, the state's highest court changed that, and the reasoning behind the ruling is worth a look no matter what state you live in.
What Happened
On July 31, 2026, the Michigan Supreme Court ruled 4-3 in Attorney General v. Eli Lilly and Company that businesses can't hide behind a general license or regulatory approval to escape consumer protection claims. The case started in 2022, when Michigan Attorney General Dana Nessel tried to investigate how Eli Lilly priced its Humalog insulin under the state's Consumer Protection Act.
Eli Lilly pointed to two older decisions, Smith v. Globe Life Insurance Company from 1999 and Liss v. Lewiston-Richards Inc. from 2007, that had let regulated businesses claim broad immunity simply because they held a license or operated in a regulated industry.
The Michigan Supreme Court's new ruling narrows that shield significantly. A business is only exempt if the specific conduct being challenged was specifically authorized by a regulator, not just because the business generally operates under a license. Three justices dissented, arguing the case was not ready for a ruling because the Attorney General had not yet alleged an actual violation. The case now returns to circuit court, where the investigation can move forward.
It is worth being precise about what the ruling did and did not do. The decision does not find that Eli Lilly did anything wrong. It resolves a procedural question about whether the state can investigate at all.
Why This Matters Here in Nevada
This case was decided under Michigan law, so it does not change Nevada's consumer protection statutes directly. But the reasoning travels beyond Michigan's borders. Most states, Nevada included, have consumer protection laws with carve-outs for regulated industries. Those exemptions exist so courts do not second-guess decisions a regulator has already made. When read too broadly, however, an exemption can become a loophole that shields misconduct instead of legitimate, regulator-approved conduct.
For Nevada consumers, this is a reminder that a business being licensed does not automatically mean every decision it makes is protected from a lawsuit. If a licensed contractor, lender, insurer, or healthcare provider misled you or cut corners in a way that had nothing to do with what a regulator approved, you may still have a claim worth exploring.
For Nevada business owners in fields like healthcare, financial services, real estate, or construction, the lesson runs the other way. Holding a license is not a blanket defense. If business practices go beyond what a regulator specifically authorized, a business could face liability even in an industry it assumed was protected. Reviewing practices with counsel is better than assuming a license covers everything.
Practical Takeaways
If you think a business treated you unfairly, do not assume you are out of options because the company is licensed or regulated. What matters is whether the specific conduct was actually approved by a regulator, not whether the business holds a license in general. Keep records of pricing, promises, and communications, since those details often decide a consumer protection claim.
If you run a regulated business, check that day-to-day practices match what your license or permit authorizes. If you are unsure where you stand, talk to a lawyer before assuming the law does or does not protect you.
Questions About Your Business or Consumer Rights?
The Sookiassian Firm advises Nevada businesses on transactional and compliance matters. Call (702) 518-8584 for a consultation.
Contact the FirmFrequently Asked Questions
Does the Michigan Eli Lilly ruling change Nevada law?
No. The ruling was decided under the Michigan Consumer Protection Act and does not directly change Nevada's consumer protection statutes. Its reasoning is relevant because Nevada, like most states, has consumer protection laws with exemptions for regulated industries.
If a business is licensed, can it still be sued for consumer protection violations?
Being licensed does not automatically protect a business from every claim. What generally matters is whether the specific conduct at issue was actually authorized by a regulator, not simply whether the business holds a license in general.
I think a licensed business misled me. What should I do?
Keep detailed records of pricing, promises, advertisements, and communications. Then speak with an attorney who can evaluate whether the specific conduct falls outside what the business's license or regulator authorized.
I own a regulated business in Nevada. What does this mean for me?
Holding a license is not a blanket defense. If day-to-day practices go beyond what a regulator specifically authorized, your business could face liability even in a heavily regulated industry.
Does The Sookiassian Firm handle consumer protection matters?
The Sookiassian Firm advises Nevada businesses on transactional and compliance matters, including reviewing whether business practices align with regulatory authorization. If you have questions, contact the firm to discuss your situation.
Contact The Sookiassian Firm
This post is for general information only and is not legal advice. Consumer protection and business law issues depend heavily on the specific facts of your situation, and Nevada law may differ from Michigan's in important ways. If you believe you have been misled by a business, or you run a business and want to make sure your practices hold up, contact The Sookiassian Firm for a consultation.
Call (702) 518-8584 or contact us online to schedule a consultation.
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Jaklin Sookiassian
Jaklin Sookiassian is the founding attorney of The Sookiassian Firm, a Las Vegas personal injury and business law practice. She is admitted to the Nevada and New York bars and previously practiced corporate finance at Fried Frank in New York. Learn more about Jaklin.