A class-action lawsuit filed against an energy provider on Friday alleged the company used a “bait and switch” tactic when getting customers to sign up.
Oladipupo Adesina and Michael Todd filed the lawsuit against XOOM Energy. They said the company advertised it would cut customers' energy bills if they signed up; however, after signing up, the company allegedly raised its rates.
Adesina, a resident of Laurel, Maryland, switched to XOOM Energy from Baltimore Gas and Electric (BGE) in June 2014. He alleged the rates were reasonable for the first two months of service; however over the following three months, his bills were more than 35 percent higher than what BGE would have cost him.
Todd, a resident of West Orange, New Jersey, switched to XOOM in May 2013. He alleged the costs increased each month, and his energy bill was 86 percent higher in January 2014 and 128 percent higher in February 2014 than what his original energy supplier Public Service Electric & Gas would have charged him over the same period.
The lawsuit seeks class status for all XOOM customers and more than $5 million in damages.
Adesina and Todd are represented by Beatrice Yakubu, Charles J. LaDuca and Taylor Asen, of Cuneo Gilber & LaDuca, LLP; Richard D. Greenfield, of Greenfield & Goodman, LLC; and Gary E. Mason, of Whitfield Bryson & Mason, LLP.
United States District Court for the District of Maryland case number 8:15-cv-00154.