Palmco Power NJ Class Action Settlement

Electricity supplier Palmco Energy NJ LLC has agreed to pay $4.5 million to settle a class action lawsuit alleging its advertising and sale of gas supply and electric generation service violated certain New Jersey statutes and regulations.

The New Jersey Attorney General’s Office, the New Jersey Board of Public Utilities and the New Jersey Division of Consumer Affairs filed the lawsuit against Palmco on May 23, 2014.

Palmco allegedly made door-to-door sales calls and telephone calls to solicit consumers into using its energy services. However, despite its promises, Palmco allegedly failed to provide competitive energy rates, rates that were lower than the utility companies, or rates that were consistent with pricing mechanisms in its contracts.

Consumers’ electricity bills reportedly skyrocketed during the severe winter of 2013-2014.

Palmco denies the allegations but agreed to settle the class action lawsuit to avoid the burden and expense of ongoing litigation. The proposed settlement reportedly provides up to $4.5 million in consumer restitution.

“Palmco portrayed itself as an affordable alternative for New Jersey consumers looking to lower their energy bills, but failed to deliver on its promises,” Acting New Jersey Attorney Christopher S. Porrino said in a June 23, 2016 statement. “Through this settlement, Palmco has agreed to significant revisions in its marketing and sales practices that are intended to ensure that consumers are provided with accurate disclosures as to pricing and are not misled.”

Under the terms of the Palmco settlement, Palmco has agreed not to engage in unfair or deceptive acts or practices related to its advertising and sale of natural gas and/or electricity supply services in New Jersey. The electricity supplier will also comply with all applicable statutes and regulations of the New Jersey Board of Public Utilities and the Division of Consumer Affairs.

The Palmco settlement also requires Palmco to change its business practices, and provides for civil penalties, restitution for consumers, and reimbursement of the State’s attorneys’ fees and investigative costs.

Who’s Eligible

“Polar Vortex Customers” and “Non-Polar Vortex Customers” may submit claims for Restitution Fund B by the deadline of May 15, 2018.

Polar Vortex Customers: Anyone who was a customer of Palmco during January, February and/or March 2014 and allegedly experienced overcharges by Palmco on their gas and/or electric bills.

Non-Polar Vortex Customers: Anyone who was a Palmco customer at any time up to and including the settlement’s effective date, other than during January, February and/or March 2014.

Potential Award

Palmco previously distributed $3.5 million from Restitution Fund A. However, eligible Class Members may submit a claim for restitution from the $1 million Restitution Fund B.

Proof of Purchase

Class Members must provide their Claimant Code (included on the mailed settlement notice) and supporting documentation such as advertising and marketing materials, a Palmco contract, correspondence with Palmco, and/or bills.

Claim Form

CLICK HERE TO FILE A CLAIM »

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

5/18/2018 (Restitution Fund B)

Case Name

Robert Lougy v. Palmco Power NJ LLC, Case No. MER-C-33-14, in the Superior Court of New Jersey Chancery Division, Mercer County

Final Hearing

N/A

Settlement Website

www.NJAGPalmcoSettlement.com

Claims Administrator

Rust Consulting

For more information about the Palmco settlement, visit www.NJConsumerAffairs.gov or call the New Jersey Division of Consumer Affairs at (973) 504-6200.

Class Counsel

Robert Lougy
ACTING ATTORNEY GENERAL OF NEW JERSEY

Defense Counsel

MCELROY DEUTSCH MULVANEY & CARPENTER LLP

CULLEN & DYKMAN LLP