Another Class Action Suit Brought Against Different Retail Supplier

In the wake of the polar vortex, answering class action lawsuits may become akin to whack-a-mole for retail suppliers.

The latest suit, seeking class action status, has been filed in United States District Court for the District Of Maryland against Viridian Energy, LLC, and similar to another recent suit against a competitor, focuses on the supplier's pricing as compared to its marketing and disclosures.

Citing several statements alleged to be from Viridian's marketing materials, the suit alleges that, "These statements are materially misleading because by switching to Viridian, consumers receive energy services that are substantially more costly."

One cited statement alleged to be from Viridian was: "Viridian strives to offer the most competitive rates possible to customers. Deregulation allows electricity suppliers such as Viridian to buy energy wholesale from competitive providers and pass the potential savings along to customers."

"Because our energy comes from renewable and responsible sources, you can do something better for the environment at a competitive price," is another alleged statement from Viridian cited by the suit

"At a minimum, Defendant exploits ambiguities in their representations by creating the expectation of competitive pricing, when in fact the promise of savings in their energy bills is illusory," the suit alleges.

The suit alleges while Viridian's website includes a disclaimer that, "Viridian's rates may be higher or lower than the utility's rate," the same disclaimer goes on to state "On average, despite fluctuations, we have historically provided competitive rates to our customers, since we set our rate offerings each month for each market separately."

"A reasonable consumer hearing these statements would believe that switching to Viridian would be beneficial to them and that they would enjoy unparalleled energy costs savings. While the disclaimer indicates that Viridian variable rates do fluctuate, Defendant fails to disclose that after the introductory rate, its rates will substantially exceed the market rate and consumers’ rates from their local utility company, and that savings will rarely ever occur again," the suit alleges.

"Defendant’s misrepresentations and omissions caused injury to Plaintiff and Class members because they believed that they would receive energy costs savings on their electric bills, when in actuality, Plaintiff and Class members were actually charged substantially more for their energy supply by switching to Viridian," the suit alleges, alleging rates as high as 17¢.

Specific alleged counts in the suit include violation of the Maryland Consumer Protection Act; breach of contract; breach of covenant of good faith and fair dealing; common law fraud, including fraudulent inducment, and fraudulent concealment; negligent misrepresentation; and unjust enrichment

Case 1:2014cv02715