A Pennsylvania woman is settling a class action lawsuit against Ambit Energy over alleged rate increases. Amy Silvas, who is a plaintiff in the suit, said that the lawsuit was needed to prevent energy rate hikes at gas stations across Pennsylvania. She said she was originally rate increases of up to 50 percent for her energy consumption at the local service station. The suit names the board of directors of Ambit Energy as well as several banks and lenders. It is believed that other gas stations may be affected as well.
Class Action Lawsuits Against Ambit Energy
Class action lawsuits allow groups of people to band together to file a suit against an individual or corporation. The suit will be filed in the county where the defendant resides, or in the county where the alleged wrongdoing occurs. The complaint must be filed by a person who can show that they have been the victim of the alleged discrimination or that their rights have been violated. After a complaint is filed, the defendant is normally given 30 days to answer or a trial date will be set.
People who sign on to the suit are usually entitled to a percentage of the money recovered by winning the lawsuit. If the rate increases, they are usually awarded a certain amount above the rate increase and a new contract. If the rate does not increase, they are entitled to the difference. If a settlement amount is reached, the money goes to an attorney who handles the case.
The lawsuit says that Ambit Energy took two years to implement the changes, which only took place after one of its investors requested the change.
Opponents to the lawsuit say that there is no proof that the rate increase was intentional. Supporters say that the lawsuit is the mistreatment of the laws governing rate increases in the state of Pennsylvania. The amount of the payment depends on how much each class member earned. The agreement between Ambit Energy and its customers has expired, so the lawsuit cannot go forward.
Another lawsuit is filed against Ambit Energy and was brought on behalf of three class members who claim that they were discriminated against when they tried to get a rate reduction.
According to the lawsuit, the company offered discounts to its high-risk customers in exchange for them staying longer at the business. One customer received a discount of forty percent off his bill while another was eligible for a fifty percent reduction. Class members who bought electrical equipment on credit and had unpaid bills on that credit were also eligible for discounts. These discounts, according to the lawsuit, were not properly disclosed to the customers.
There is also a lawsuit against Ambit Energy over its use of mercury as a fuel additive.
The Environmental Protection Agency limited the amount of mercury allowed to be used because it is known to cause serious neurological damage. As a result, the lawsuit claims that Ambit Energy knowingly sold large amounts of mercury and failed to warn its customers. A class-action suit could lead to financial compensation for all those who suffered from neurological problems as a result of Ambit Energy’s negligence.