“Ambit Energy Gets RICO, Rate Suit Thrown Out”
An Illinois federal judge has granted summary judgment to natural gas supplier Ambit Energy Holdings LLC and tossed a proposed class action brought by a ratepayer who alleged the company broke its promises, jacked up rates and violated the Racketeer Influence and Corrupt Organizations Act, ruling the company’s conduct did not constitute mail or wire fraud.
Stephen Rasch, counsel for Ambit, said that a particularly harsh winter in 2013 and 2014 caused natural gas prices to rise and the opinion notes that the variable rate was fairly close to the guaranteed rate before that winter. In addition, the company allowed ratepayers to switch back to the guaranteed rate if they asked.
Rasch said the company acted within the law.
“We feel like Ambit really did everything that it could,” he told Law360 on Wednesday. “Customers were informed about [their] rights.”
Ambit was represented by Jennifer Meghan Nylin and Stephen C. Rasch of Thompson & Knight LLP.