Just Energy Group alleged to charge customers 'exorbitant variable energy rates'

By Noddy A. Fernandez | Oct 13, 2017

BROOKLYN, N.Y. (Legal Newsline) – Two New York consumers allege that an independent energy service company injured them with its deceptive marketing and sales practices.

Fira Donin and Inna Golovan, on behalf of themselves and all others similarly situated, filed a complaint on Oct. 3 in the U.S. District Court for the Eastern District of New York against Just Energy Group Inc. and Just Energy New York Corp. alleging unfair and deceptive acts and practices, common law fraud and other counts.

"Just Energy entices residential customers to sign up for its service by offering its energy at low initial ‘teaser rates.’ Yet defendants don’t alert their unsuspecting customers that when the teaser rate period expires consumers are charged exorbitant variable energy rates. Just Energy’s customers are given no advance notice of these excessive variable rates. Just Energy also does not disclose to customers that its rates are consistently higher than the rates charged by consumers’ existing utilities, or how variable rate customers can calculate (and avoid) Just Energy’s steep variable gas and electricity charges," the complaint states.

The plaintiffs also allege that when the underlying wholesale price of gas and/or electricity goes up, the defendants raise rates but then did not lower then when the wholesale cost lowers. They allege then customers are paying an inflated level.

The plaintiffs request a trial by jury and seek to render an award of compensatory damages of at least $100 million, award of punitive damages, court costs, and grant all such other relief as the court deems appropriate. They are represented by Steven L. Wittels, J. Burkett McInturff and Tiasha Palikovic of Wittels Law PC in Armonk, New York and by Daniel Hymowitz of Hymowitz Law Group PLLC in New York.

U.S. District Court for the Eastern District of New York case number 1:17-cv-05787-WFK-RML

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U.S. District Court for the Eastern District of New York Wittels Law, PC

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