Verde Energy Wants Fraud Claim in Price-Gouging Class Action Tossed

Verde Energy told the court that a consumer fraud claim in a price-gouging class action lawsuit should be dismissed since the electric company never promised that prices were governed by wholesale market rates.

Verde argues that its terms of service clearly state that pricing “may change monthly with market conditions.”

Due to this fact, Verde argues that plaintiff Tracey Mercado doesn’t have the standing to bring the Illinois Consumer Fraud and Deceptive Business Practices Act claims against them.

In February, state consumer fraud claims in the class action were dismissed by U.S. District Judge Joan B. Gottschall but the judge gave Mercado leave to amend her complaint and try again.

The new amended complaint argues that Verde Energy increased their rates far above market value, but the energy company says this claim is insufficient.

“Simply put, Mercado cannot base her amended ICFA claim on promises that she would like to have been included in the Terms of Service but were not,” Verde Energy argues.

Mercado filed the Verde Energy class action lawsuit in March 2018 over claims that she and other consumers were drawn in by the energy company’s low rates but were shocked when these rates skyrocketed. This allegedly resulted in consumers paying more than they should have for energy services.

The initial energy rate class action lawsuit includes claims of breach of contract, unjust enrichment, and fraud. Aside from the Illinois Consumer Fraud Act claim, the case was allowed to proceed in February. The fraud claim was amended after the court found that Mercado hadn’t plead her case with enough specificity.

Verde Energy continues to oppose this claim even after it was amended.

“Had Verde intended to index its variable rates to its competitors’ prices or some ‘wholesale’ rate or price — as Mercado continues to allege in the amended complaint — Verde would have used language to that effect in the terms of service,” the company states.

Verde argues that Mercado didn’t follow through on the court’s request for more specific information, so it should be permanently thrown out.

Although Mercado takes issue with Verde’s statements regarding their “low cost,” “competitive,” and “cost-effective” rates, the company argues that these statements are not a good basis for her claims.

Verde notes that other courts have determined statements similar to these to be “non-actionable puffery” that cannot be used as a basis for legal action.

Mercado is represented by Edward A. Wallace of Wexler Wallace LLP, Jonathan Shub and Kevin Laukaitis of Kohn Swift & Graf PC, Daniel K. Bryson of Whitfield Bryson & Mason LLP, Gregory F. Coleman of Greg Coleman Law PC, and Jason T. Brown of JTB Law Group LLC.

The Verde Energy Pricing Class Action Lawsuit is Mercado v. Verde Energy USA Inc., Case No. 1:18­-cv­-02068, in the U.S. District Court for the Northern District of Illinois.

Read More Lawsuit & Settlement News:

Halo Top Creamery Ice Cream Isn’t Full Pint, Class Action Says

What Are the Side Effects of Taking Xeljanz?

Kate Spade Class Action Says Outlet Reference Prices are Sham

Zostavax Allegedly Causes Shingle Vaccine Reaction, Lawsuit Claims