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This settlement is closed!
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Gateway Energy Services has agreed to pay consumers $9.25 million to resolve claims that they violated the terms of their energy contracts.
The settlement will benefit individuals who enrolled in a Gateway residential variable rate plan and paid Gateway variable rates for electricity and/or natural gas in New York, New Jersey, Pennsylvania, Maryland, Virginia, Kentucky, and Ohio. The exact date restrictions for each state are listed in the “Who’s Eligible” section below.
Gateway’s settlement is poised to resolve three separate class actions. These complaints argued that Gateway violated its own contract terms and various laws by adjusting consumer energy rates on factors other than market prices.
The energy company allegedly pledged in its contract terms and conditions to adjust consumer energy rates based on market prices. However, the company reportedly took advantage of consumers by luring them in with low rates only to raise their monthly rates significantly later on.
“Defendant’s representations are deceptive,” one of the Gateway class action lawsuits claimed. “In fact, Defendant’s variable rates are substantially higher than those otherwise available in the natural gas market, and its rates do not reflect changes in the wholesale cost Defendant pays for the natural gas it supplies to its retail customers.”
The settlement will provide consumers with $.00333 per kilowatt hour of electric supply service and $.02509 per therm of natural gas supply through Gateway. The actual amount of each Class Member’s award will depend on each individual’s usage, but the average payment is estimated to be $78.80.
Class Members need to file a valid Claim Form by Aug. 1, 2019 in order to benefit from the settlement. The deadline for exclusion and objection is also Aug. 1, 2019. The final approval hearing for the settlement is scheduled for Sept. 13, 2019.
Who’s Eligible
Individuals who enrolled in a Gateway residential variable rate plan and paid Gateway variable rates for electricity in any of the following states:
- New York (from November 2012 to April 5, 2019)
- New Jersey (from November 2012 to April 5, 2019)
- Pennsylvania (from November 2012 to April 5, 2019)
- Maryland (from November 2015 to April 5, 2019).
Additionally, the Class includes consumers who similarly paid for natural gas in the following states:
- New York (from July 2011 to April 5, 2019)
- New Jersey (from July 2011 to April 5, 2019)
- Pennsylvania (from November 2012 to April 5, 2019)
- Maryland (from November 2015 to April 5, 2019)
- Virginia (from November 2013 to April 5, 2019)
- Kentucky (from July 2011 to April 5, 2019)
- Ohio (from July 2011 to April 5, 2019).
Potential Award
$78.80 (average)
$.00333 per kilowatt hour of electric supply service and $.02509 per therm of natural gas supply. The average payout is expected to be $78.80.
Proof of Purchase
N/A
Claim Form
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
8/1/2019
Case Name
Hamlen v. Gateway Energy Services Corporation, Case No. 7:16-cv-03526-VB-JCM, and Wagar v. Gateway Energy Services Corporation, Case No. 7:18-cv-10244-VB, in the U.S. District Court for the Southern District of New York; Eisig, et al. v. Gateway Energy Services Corporation, Index No. 605739/2016, in the Supreme Court of the State of New York for the County of Nassau
Final Hearing
9/13/2019
Settlement Website
Claims Administrator
Gateway Variable Rate Plan Settlement
c/o Claims Administrator
1650 Arch Street, Suite 2210
Philadelphia, PA 19103
Info@GatewayEnergySettlement.com
(833) 780-5120
Class Counsel
Greg Blankinship
Todd S. Garber
Antonino B. Roman
Chantal Khalil
FINKELSTEIN BLANKINSHIP FREI-PEARSON & GARBER LLP
Jonathan Shub
Kevin Laukaitis
KOHN SWIFT & GRAF PC
Defense Counsel
Michael D. Matthews Jr.
MCDOWELL HETHERINGTON LLP
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11 thoughts onGateway Energy Variable Rate Class Action Settlement
i was taken by Gateway energy also on my gas bills since 2009 till 01/11/22 all cause i was saving paper and not getting my bills mailed too me as well as being put on a monthly budget plan, theirfore was not aware of the high variable rate they have been charging me as they have done to so many others. They are only sending me money to cover the difference on the next billing cycles to cover their high costs but for all the years that I have been over charged this makes up for nothing.