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Retail Supplier Enters Settlement Concerning Putative Class Action Complaint

November 2, 2020

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Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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PALMco Energy PA L.L.C. (Defendant) has entered into a settlement agreement in a putative class action complaint before a federal court, under which PALMco would contribute $1 million to a settlement fund

The lawsuit alleges that PALMco violated the Telephone Consumer Protection Act, 47 U.S.C. § 227 (the TCPA) by, inter alia, placing unsolicited telemarketing calls to Plaintiff and members of the putative class using a pre-recorded message.

PALMco Energy provided the following statement concerning the matter:

PALMco Energy was pleased to have reached a settlement agreement with the plaintiff and class counsel in this matter. We deny plaintiff's allegations, but believed it was in the best interests of the parties to avoid the expense, distraction, and risk of litigation. We look forward to judicial approval of the proposed settlement and continue to put our focus on best serving our customers around the country.

--- Statement from PALMco Energy

If the Court gives final approval to the Settlement, Defendant and its insurance company will create a fund of $1,000,000. Claimants will be eligible to receive a pro rata share of the Net Settlement Fund. The value of a Settlement Class Member's individual award will depend upon the number of Settlement Class Members who file valid Claim Forms.

The $1 million will be used to pay the Claims of Settlement Class Members, Settlement Class Counsel's Fees, Costs, and Expenses Award, Plaintiff's Service Payment, and compensation for the Settlement Administrator for providing notice to the Settlement Class and administering the Settlement.

Settlement Class Counsel will petition the Court to receive a Fees, Costs, and Expenses Award up to $345,000. The Plaintiff will request a Service Payment of up to $10,000 for his services as class representative and his efforts in bringing the Action. The Court will make the final decision as to the amount to be paid to the Plaintiff.

The settlement specifically states that, "This Agreement does not constitute, is not intended to constitute, and will not under any circumstances be deemed to constitute, an admission of wrongdoing or liability by any Party, such wrongdoing and liability being expressly denied and no final adjudication having been made."

PALMco denies it did anything wrong and has defended itself throughout the lawsuit.

"Defendant denies each and every one of the allegations of unlawful conduct, any wrongdoing, and any liability whatsoever, and no court or other entity has made any judgment or other determination of any liability. Defendant further denies that any Class Member is entitled to any relief and, other than for settlement purposes, that this Action is appropriate for certification as a class action," the settlement notes

The court gave preliminary approval to the settlement agreement

The Court has decided that everyone who fits this description is a Class Member for purposes of the proposed Settlement: "All persons in the United States who were contacted by or on behalf of the Released Parties or its affiliates promoting the Released Parties that were called with a prerecorded message, automated dialing system or were called while on the National Do Not Call Registry for at least 30 days from January 1, 2016 through September 30, 2020."

The case is before the United States District Court for the Western District of Pennsylvania, Case 2:19-cv-01675-MJH

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