A federal court has granted preliminary approval of a class action settlement between Ambit Energy L.P, et al. and a plaintiff to resolve a suit brought against Ambit concerning Ambit's variable rate pricing

See background on the case here. The suit, although initially dismissed by a lower court, was revived on appeal

Settling parties estimate that the potential aggregated pay out for 100% claims participation under the settlement would be approximately $9,300,000.

The Settlement Agreement provides that Ambit will reimburse two subclasses of the putative class action: (1) Class members who enrolled with Defendant between January 1, 2011 and January 12, 2014 will receive a check in the amount of 15% of all amounts paid to Defendant while on the Select Variable Plan; and (2) Class members who enrolled with Defendant between January 13, 2014 and the Preliminary Approval Date will receive a check in the amount of 2% of all amounts paid to Defendant while on the Select Variable Plan.

More specifically:

• Each Eligible Class Member with a date of enrollment as Defendant’s customer from January 1, 2011, through January 12, 2014, and who was on Defendant’s Select Variable Plan at any time, will receive a check in the amount of 15% of all amounts paid to Defendant by such Eligible Class Member only for Time Periods during which such Eligible Class Member was on the Select Variable Plan.

• Each Eligible Class Member with a date of enrollment as Defendant’s customer from January 13, 2014, through the Preliminary Approval Date, and who was on Defendant’s Select Variable Plan at any time, will receive a check in the amount of 2% of all amounts paid to Defendant by such Eligible Class Member only for the Time Periods during which such Eligible Class Member was on the Select Variable Plan

Ambit (Defendant) had said in seeking approval of the settlement that, "Defendant maintains that no law has been violated, it has done nothing wrong, and it has several meritorious defenses to the claims asserted in these actions. Nevertheless, Defendant recognizes the risks and uncertainties inherent in litigation, the significant expense associated with defending a putative class action, the costs of any appeals, and the disruption to its business operations arising out of burdensome and protracted litigation. Accordingly, Defendant believes that the Settlement set forth in the Agreement is likewise in its best interests. Defendant expressly denies any and all liability and/or wrongdoing with respect to any and all of the claims alleged in the Litigation and any similar proceedings and enters into this Settlement solely to compromise a disputed claim"

Case No. 2:14-CV-05005-ER, SILVIS v. AMBIT ENERGY, L.P. et al

Tags:
Litigation   Variable Rates  

Comment on this story


ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com
TPV-SALES-EXECUTIVE -- Back Office Provider -- Other
Sr-Market-Risk-Analyst -- Wholesale Supplier/Trader -- New York - New York City Metro
Energy-Regulatory-Specialist -- Other -- Other
More Stories on RetailEnergyX.com:
Updated: $14 Million Class Action Settlement Involving Retail Supplier Approved
Settlement In Lawsuit Against Retail Supplier Nears Approval; PUC Case Continues
Appeals Court Affirms Insurer Has Duty To Defend Retail Supplier Against Class Action
Court Dismisses Suit By Supplier Seeking Refund Of ISO-NE Charges Due To Alleged Gas Manipulation
More New Class Action Settlements Announced For Customers Who Purchased Competitive Gas Supply