Texas Retail Provider Permanently Enjoined From Disparaging Services Of Another REP By Making Misleading Comparison Representations

Texas Attorney General Ken Paxton today formally announced details of the previously approved settlement in the AG's lawsuit against Griddy Energy, LLC

Under an agreed final judgment and permanent injunction, Griddy (Defendant) is permanently enjoined from, among other things:

• Disparaging the services of another retail electricity provider by making misleading comparison representations

• Collecting fees or payments for services without clearly and conspicuously disclosing on Defendants’ internet websites, advertisements, and any other marketing and promotional materials offered by Defendants that electricity prices may increase to the specifically identified high system-wide offer cap during severe weather or other disasters; and

• Using false, misleading, or "unsubstantiated" testimonial endorsements to promote Defendants’ services

Griddy is also permanently enjoined from making false or misleading statements regarding electricity rates and savings and generally from making any false or misleading statements in the advertising of retail electricity.

Under an agreed final judgment and permanent injunction (AFJPI), Plaintiff (the AG) stipulates that Defendants continue to deny liability or violation of law and enters this AFJPI without an admission of liability. Plaintiff stipulates that Defendants have not admitted to a violation of law.

As previously reported, this settlement, along with Griddy’s confirmed bankruptcy plan of liquidation, releases former Griddy customers from any and all outstanding balances otherwise due and owing to Griddy, unless they elect to opt out of the release. Former customers may pursue a legal claim in the bankruptcy court to recover any monies they may have already paid for electricity they consumed during the winter storm.