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On Tuesday, an energy customer filed a class action lawsuit against Ambit Energy LP, a Texas-based power reseller and marketer, alleging that the power company deceived customers by falsely promising low electricity rates and free energy in its marketing and then overcharging for services.
Lead plaintiff Michael Urbino filed the class action lawsuit in New Jersey federal court. Urbino alleged that the Texas energy company used deceptive marketing ploys currently permitted by deregulated retail electricity markets in New Jersey and other states to offer customers “life-changing rewards,” “free travel, cruises and getaways,” and “free energy” to get them to switch energy suppliers.
The class action lawsuit alleges that Ambit claims it is able to do this by offering to charge competitive electric rates based on prevailing marketing conditions, but, in reality, rates based on prevailing marketing provisions actually increases the cost of electricity for Ambit’s customers. Urbino also alleges that Ambit deceptively markets its electricity sales by offering either rewards or “free energy,” but in truth, argues Urbino, the rewards are worth much less than the savings and benefits Ambit allegedly promised.
“In fact,” argues the plaintiff in his deceptive marketing class action lawsuit, “Ambit Energy’s pitch is in reality a false and misleading scheme, in which the rates actually charged to consumers are not competitive and bear little relation to prevailing market conditions.” Further, Urbino argues, “As a consequence of this scheme, consumers in New Jersey and across the nation are essentially being scammed out of millions of dollars in exorbitant charges for electricity.”
Urbino alleges that he switched his energy company from another New Jersey based utility company, PSE&G, to Ambit Energy in 2012 based on Ambit’s allegedly deceptive marketing promising substantial savings. However, Urbino claims in his class action lawsuit that his Ambit electricity bill was more than 60 percent more than his PSE&G bill would have been. “No reasonable consumer who knows the truth about the Ambit Energy’s exorbitant rates would choose Ambit Energy as an electricity supplier,” the deceptive marketing class action lawsuit says.
The class action lawsuit alleges that Ambit Energy’s marketing constituted breach of covenant of good faith and fair dealing and unjust enrichment, as well as violated New Jersey’s Consumer Fraud Act. Urbino seeks to represent a Class of current and former Ambit Energy customers with his class action lawsuit. “Plaintiff brings this action to redress the deceptive marketing and billing practices of Ambit Energy,” Urbino says in his class action lawsuit, “which have resulted in thousands of consumers across the nation to pay substantially more for their electricity than they should have paid in the absence of Defendant’s unlawful and misleading scheme.”
Lead plaintiff Michael Urbino is represented by Jonathan Minkove and Lawrence J. Friscia of Friscia & Associates LLC, and Charles J. LaDuca, Bonnie Prober and Michael J. Flannery of Cuneo Gilbert & LaDuca LLP.
The Ambit Energy Deceptive Marketing Class Action Lawsuit is Urbino v. Ambit Energy LP, et al., Case No. 3:14-cv-05184, in the U.S. District Court for the District of New Jersey.
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41 thoughts onAmbit Energy Hit with Deceptive Marketing Class Action Lawsuit
Last March they claim they sent me a letter saying I needed to RE-sign to stay on their lower rate plan. As a result of not sending the letter back (which I don’t recall receiving), I just discovered they jack my rates up by 60% vs. my prior rate with them. Why would I have to elect to remain on a plan that is 60% cheaper? Why would I not automatically stay on the same plan? And why wouldn’t any lack of returning their supposed letter result in me being placed back on PECO? The answer is they obviously set this up to rip people off. This is the most egregious thing I’ve ever encountered. I see there is a class action in NJ. What must I do to join it? I’m a PA resident.
I am also in the same situation you are all in. I was just spoken to very rudely by their customer service department. I called to cancel my service with AMBIT back in November of 2014 and was told they have no record of my call so I just got charged over $400.00 when it should have been $195.00. I am furious
I’ve been taken advantage of by this scheme also, divorced mom now stuck with $609 bill for a 3 bed 1 bath rancher heated mainly by Woodstove! Someone please tell me how to get help. Thank you!
Sounds like a pyramid scheme from what Mr. John Edwards is saying.
They said that we called in for a budget. And we never did . We canceled and now got a bill for $1000.00. We are in the process of filling for a lawsuit, under falsification
Here in texas my bill is for FREE because I signed up 15+ local customers and the residual income covers for it Ambit is not even about the money its about leadership and integrity. Too bad few people can see the potential behind it.
We have been hoodwinked here in NY with Ambit Energy! I want in on this too! couldnt figure out for two years why our bill was so high I almost contacted an electrician. My local company made us aware of this situation and we finally cancelled our areement! Couldnt do that for the last 2 years. No one would ever answer the calls, or reply to emails. We were also told we couldnt just cancel! I want my money back and then some. Paying the bills has been difficult for us and I dont think its fair!
The same exact thing has happened to myself/husband. How do I get in on this?
I’m a NYS resident and have been scammed by Ambit as well. My electric bill kWh has consistently been more than our local providers for 2 years now. I trusted Ambit to adhere to the original agreement and even thought they changed that and required us to ‘reregister’, I did so on line in a timely fashion almost 2 yrs ago. It processed fine on my end. I had received no further contact from them since. By chance I checked into our local providers rates and found that I was being over charged each month for 2 years and recent bills show a price gouging effect of approx double the local providers rates. I contacted Ambit by phone and they stated that in Dec 2012, my registration wasn’t finished. A lie and a deceptive measure to over charge and over inflate charges. I would like to bring on or join a lawsuit if they don’t reimburse me the overages that I clearly qualify for.
HOW CAN I JOIN THE CLASS ACTION. I AM AFFECTED CONSUMER BYT THE DECEPTIVE PRACTICE.
THANK YOU
Hello Everyone who asking for Help? I went on this website it,s called Find Great Lawyers.com and i also wrote down the phone numbers 1(312)346_5320 for Illinois. Residents and 1(800)517_1614For other states.
LESSONS IN LOGIC for your class action suit against the finest company I have ever seen
1.Family that created the world’s largest franchise (the 7-11 chain) with 15,000 more outlets than McDonalds, and invested in by some of the finest and most respected financial families in Texas, sells 7-11 only to start an illegal energy pyramid scheme? Strike ONE for your law firm
2. Small startup energy company that beats the pants off its competition because of its superior data processing and management abilities, grows 20,000 percent in three years, and is named by INC Magazine as the fastest growing privately held company in America…not bad for an illegal energy pyramid scheme. Strike 2
3.After years of incredible service to its fast growing customer base that enjoys guaranteed savings over incumbent utilities; mileage awards for energy usage, free energy (yes, I and also my 83 year old widowed mother got free supplies of gas while no other energy company in America has figured out how to give supplies away for free…Ambit is named by JD Power and Associates as #1 in customer satisfaction in 4 northeast states. STRIKE 3 P.S. my gas bill last february in the coldest winter in 100 years was $40…Thank YOU AMBIT FOR MY FREE ENERGY SUPPLY EXACTLY AS YOU PROMISED!
Just spent last saturday night in Dallas with Ambit’s co-founders….strong Christian men of exceptional character and integrity.
You guys won’t ever win against Ambit, because they are the best, and underpromise while overdelivering
Your lawsuit is just another example of why America has gone down the tubes: profiteering over justice and truth. Ambit does exactly as it says it will 100% of the time.
Dear Doctor, I am a NYS resident. I was just screwed by Ambit. For 2 billng cycles I was charged 300% what my local utility company charges. When I called Ambit, they said I received a letter in October and did not respond. Oh, I see. When I received what appeared to be another piece of junk mail from Ambit and I failed to repy, I was consenting to pay 300% what National Grid charges for therms and Kwh. Yeah, doctor, that makes sense. How many elderly and uneducated customers are able to realize their rates were jacked up? When they do, how many months have passed? Tens of thousands of customers and many months, Im guessing. Gee, how many millions of dollars is that?…Is there a NYS class action suit — Please advise. – Albany, NY