The law firm Sanford Heisler filed a lawsuit against Starion Energy for allegedly participating in bait-and-switch tactics that led consumers to believe they would be saving money.
The suit, a $50-million nationwide Class Action lawsuit, which is filed in the Southern District Court of New York, alleges the Connecticut-based energy company would lure customers to them by promising them savings on their energy bills if they would switch, then would charge them much more than the customers were previously paying.
"Starion promises customers savings on their energy bills if they switch their accounts from other energy suppliers," Jeremy Heisler, a founding partner with the firm, said. "In fact, Starion often jacks up its promised rate to two or three times what customers were paying before the switch. Starion has a practice of targeting vulnerable low-income and elderly consumers."
In some instances, the energy company would promise savings under a low-income assistance program, but then the customers would find that their bill was at least two to three times greater than it was previously.
The consumers are located through New York, Connecticut, Delaware, Illinois, Maryland, Massachusetts, New Jersey, Ohio, Pennsylvania and the District of Columbia. The suit also alleges Starion takes advantage of deregulation in the energy markets.