Welcome, visitor! Register

Class Action Lawsuit Filed Against Ambit Energy

Uncategorized March 31, 2015

Class Action Lawsuit Filed Against Ambit Energy
Rate this post

Class Action Lawsuit Filed Against Ambit Energy

 

Ambit Energy customers represented by national consumer-rights law firm, Hagens Berman, today filed a class-action lawsuit against Ambit alleging that the provider of electricity and natural gas services illegally operates a massive pyramid scheme, in which Ambit uses customers as consultants to market to friends and family, lures consumers to switch energy providers with the promise of lower rates, and causes the rates to increase, according to the complaint.

“Our investigation has shown that not only does Ambit use deceptive tactics to reel in its customers, but it then exploits them for its own gains – calling them ‘consultants’ and developing more pawns in its twisted scheme for higher profits.”

Attorneys representing the class of Ambit customers state that the energy company has defrauded its 13 million customers, growing its revenue from $1 million in 2006 to $1.2 billion today.

The lawsuit states that Ambit Energy Holdings LLC, Ambit Midwest LLC, Ambit Texas LLC, Ambit Northeast LLC, Ambit New York LLC, Ambit Marketing LLC, Jere Thompson Jr. and Chris Chambless have violated the Racketeer Influenced Corrupt Organizations Act (“RICO”) by “preying upon consumers in the deregulated energy market.”

The 31-page lawsuit filed on Mar. 26, 2015 in the U.S. District Court for the Northern District of Illinois accuses the company of maintaining a pyramid scheme which “promises – and fails – to provide affordable electricity and gas to its customers through the utilization of a deceptive marketing campaign.”

“Ambit takes advantage of deregulation in the retail residential gas and electricity market by aggressive marketing which lures consumers into switching energy suppliers based on offers of ‘low, competitive rates’ and ‘consistent savings.’ …Ambit offers free energy and other perks to customers, which it calls ‘Consultants,’ who sign up new customers. Once a customer reaches 15 referrals, they purportedly start earning free energy and other benefits,” the complaint reads.

“We believe Ambit has created a massive pyramid scheme built on a deceptive, illegal marketing campaign,” said Steve Berman, managing partner of Hagens Berman. “Our investigation has shown that not only does Ambit use deceptive tactics to reel in its customers, but it then exploits them for its own gains – calling them ‘consultants’ and developing more pawns in its twisted scheme for higher profits.”

Consumers who are Ambit customers or who have been Ambit “consultants” may contact Hagens Berman by emailing [email protected] or by calling 206-623-7292. Additional information about the investigation is available at http://www.hbsslaw.com/cases-and-investigations/cases/Ambit-Energy.

The complaint states that Ambit’s marketing “fails to deliver on its representations,” and fails to inform consumers who switch to Ambit that they will see their energy rates “skyrocket.”

“We believe Ambit should be held accountable for these massive overcharges passed on to its customers,” Berman said. “Ambit’s way of business is nothing short of illegal – from using its customers to develop fraudulent business, to failing to offer its energy at a fixed monthly rate – it’s a rotten business.”

The lawsuit’s named plaintiff, Oleg Kostovetsky, is a resident of Skokie, Illinois who was approached in September 2013 by an Ambit consultant who told Kostovetsky that he would receive lower energy bills and consistent savings if he became an Ambit Consultant and switched to Ambit from his current energy provider. After switching to Ambit, Kostovetsky’s bills doubled compared to his rate with his previous supplier.

According to the complaint, Ambit’s marketing methods preach consistency and savings while failing to warn customers of the factors affecting Ambit’s variable energy rates. In effect, Ambit hedges its exposure to fluctuating energy prices by placing the variable burden onto unsuspecting customers.

Consumers who are Ambit customers or who have been Ambit “consultants” may contact Hagens Berman by emailing [email protected] or by calling 206-623-7292. Find out more about the lawsuit against Ambit.

About Hagens Berman

Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in nine cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List eight times. 

http://www.businessforhome.org/2015/03/class-action-lawsuit-filed-against-ambit-energy/

top-5-australian-business-directories-free-listing

No Tags

1093 total views, 2 today

  

Sponsored Links

Leave a Reply

  • PACL - आज आ सकता है निवेशकों के दो करोड़ रुपए का फैसला

    by on March 11, 2015 - 59 Comments

    PACL – आज आ सकता है निवेशकों के दो करोड़ रुपए का फैसला5 (100%) 2 votes मध्य प्रदेश/रतलाम। PACL में फंसे निवेशकों की राशि पर फैसला बुधवार को आने की संभावना है। सेट यदि कंपनी को रुपए लौटाने का आदेश देता है तो एक साल बाद निवेशकों को पैसा मिलेगा। कंपनी आरडी, एफडी सहित अन्य […]

  • KWIL कंपनी ने उगाहे झारखंड से 300 करोड़

    by on February 17, 2015 - 13 Comments

    KWIL कंपनी ने उगाहे झारखंड से 300 करोड़Rate this post कोलकाता: Kolkata Weir Industries Limited नाम की चिटफंड कंपनी पर पांच वर्षो में झारखंड से 300 करोड़ रुपये की उगाही कर गायब होने का आरोप है.  इस चिटफंड कंपनी के एजेंट तमाल कुमार जाना ने बताया : झारखंड में कंपनी ने 2009 में अपना व्यवसाय शुरू किया […]

  • The Direct Selling Association – No Backbone When You Are Under Sieg

    by on September 3, 2015 - 0 Comments

    The Direct Selling Association – No Backbone When You Are Under SiegRate this post The Direct Selling Association – No Backbone When You Are Under Sieg   According to the Direct Selling Organisation (DSA) website: “DSA’s services to members are designed to meet the needs of one person critical to the industry’s growth and future […]

  • VISHWAMITRA INDIA और SAI PRASAD पर हुई छापेमारी, 24 गिरफ्तार

    by on May 1, 2015 - 0 Comments

    VISHWAMITRA INDIA और SAI PRASAD पर हुई छापेमारी, 24 गिरफ्तारRate this post झारखंड /जमशेदपुर – चिटफंड कंपनियों पर नकेल कसने के लिए झारखंड उच्च न्यायालय की फटकार के बाद सरकारी मशीनरी हरकत में आ गई है. रांची जिला प्रशासन ने गुरुवार को दो चिटफंड कंपनियों के विरुद्ध अभियान चलाया.  पुलिस ने गुरुवार को राजधानी में […]

  • Talk Fusion Anticipates Record-Breaking Dream Getaway

    by on September 30, 2015 - 0 Comments

    Talk Fusion Anticipates Record-Breaking Dream GetawayRate this post Talk Fusion Anticipates Record-Breaking Dream Getaway   With only 6 weeks left in the qualification period, Talk Fusion is already expecting attendance to break all previous records for their 6th Dream Getaway vacation incentive from December 3-7, 2015. Talk Fusion rewards qualified Associates from across the globe […]

Subscribe to News via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 24 other subscribers