Frequently Asked Questions
- What is the lawsuit about?
- Why is this class action?
- Why is there a Settlement?
- Why did I receive a Notice?
- How do I know if I am part of the Settlement?
- How do I get a payment?
- What happens if I don’t send in a Claim Form?
- What am I giving up to get a payment or stay in the Settlement?
- What does excluding myself from the Settlement mean?
- How can an Objection be made?
- Who is Class Counsel?
- When and where will the Court decide whether to approve the Settlement?
- How do I get more information about the Settlement?
- What is the lawsuit about?
Two class action lawsuits were brought on behalf of Ambit customers in New York, Maryland, and New Jersey, alleging that the company overcharged customers on the Budget Billing Program for gas and electricity by failing to disclose to customers Ambit's actual energy supply rates and customers' actual monthly energy usage. Ambit denies any wrongdoing. No Court has made any decisions as to the merits of the allegations.
Top - Why is this class action?
In a class action, one or more individuals or entities, called class representatives, sue on behalf of others who have similar claims. In this case, the Plaintiff Class Representatives brought two lawsuits in federal court on behalf of Ambit’s energy customers who they believe have similar claims (the "Class Members"). One court will resolve issues for all Class Members, except those who exclude themselves from the settlement.
Top - Why is there a Settlement?
After more than three years of litigation and extensive negotiations, the parties have agreed to a settlement. No court has decided in favor of either party, and Ambit denies any liability. A settlement avoids the uncertainty, risks and delay of litigation, and provides Class Members the opportunity to receive monetary benefits. Both the Class Representatives and their attorneys believe that the settlement is fair and in the best interests of the Class. The settlement is subject to Court approval.
Top - Why did I receive a Notice?
If you received a Notice by mail or e-mail from the Claims Administrator, Ambit's records show that sometime between May 4, 2010 and October 24, 2019 you may have purchased energy either, electricity and/or natural gas from Ambit and been enrolled on a Budget Billing Program. The Notice explains the lawsuit, the settlement, your legal rights, what payments may be available to you, who is eligible for these payments, and how to get them.
Top - How do I know if I am part of the Settlement?
Class Members who may be entitled to receive a cash payment under the settlement include persons who received services in New York, Maryland, and New Jersey, were enrolled as customers of Ambit, and were on Ambit's Budget Billing Program at any time during the period May 4, 2010 through October 24, 2019.
If you received a Notice by mail or e-mail from the Claims Administrator, Ambit's records show that you may be a Class Member entitled to receive a payment from the settlement.
Top - How do I get a payment?
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To qualify for a payment, you must timely submit the Claim Form on or before the claim deadline of February 18, 2020.
- What happens if I don’t send in a Claim Form?
If you don’t send in a Claim Form and don’t exclude yourself from the settlement as described in the next section below, you will still be bound by all the terms of the settlement, including releasing claims as described below, but you will not receive any payment from the settlement.
Top - What am I giving up to get a payment or stay in the Settlement?
Unless you exclude yourself from the settlement, you are staying in the settlement, and that means that if the Court approves the settlement and it becomes final, you cannot sue, continue to sue, or be part of any other lawsuit against Ambit about the issues released as part of the settlement. The settlement provides that there will be a general and broad release of all claims by Settlement Class Members against Ambit Energy Holdings, LLC, Ambit New York, LLC, and Ambit Northeast, LLC, and each of their current and former parents, subsidiaries, affiliates, predecessors, successors, and assigns, and each of their respective current and former officers, directors, partners, owners, employees, agents, attorneys, and insurers. The Released Claims are further described in ¶ 11(bb) of the Settlement Agreement, available at www.BudgetBillingSettlement.com.
Unless you exclude yourself from the settlement, all of the Court’s orders will apply to you and legally bind you.
Top - What does excluding myself from the Settlement mean?
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If you don't want to be a part of this lawsuit or settlement, then you may exclude yourself (i.e. opt-out) from the settlement. To exclude yourself from the settlement, you must submit a statement to the Claims Administrator with your name, address, and phone number effectively stating "I, [insert name], wish to opt out of the Ambit Budget Billing class action settlement, and not receive any of the monetary benefits provided by the settlement or be bound by the Judgment in the case." Your opt-out statement must be signed and returned to the Claims Administrator at the following address so that it is postmarked or received on or before February 18, 2020.
CLASS ACTION OPT OUT
ATTN: Little and Lazarek v. Ambit
PO Box 43501, Providence RI 02940-3501
If you choose to opt out of the settlement: (1) you will not get any settlement payment; and (2) you cannot object to the settlement. By opting out, you will not be legally bound by the settlement, and may still pursue your own claims against Ambit at your own expense if they are still timely under the applicable statute of limitations.
- How can an Objection be made?
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If you do not like the settlement, you may object to the settlement. You may not object to the settlement if you exclude yourself from the lawsuit by opting out or if you are not a Class Member. The Court will consider your views, but the settlement may still be approved in spite of your objections.
To object, you must file a written objection with the Clerk of the Court, and must also serve your written objection on the lawyers representing the Class and Ambit. Your objection must be filed with the Court and mailed so that it is postmarked no later than February 18, 2020. Your objection must contain the following information: (a) Reference at the beginning to Little v. Ambit Energy Holdings, LLC, (Civil Action No. 3:16 Civ. 08800) and Lazarek v. Ambit Energy Holdings, LLC et al., (Civil Action No. 6:15 Civ. 6361); (b) Your full name, address, and telephone number; (c) A written statement of all grounds for the objection, accompanied by any legal support for such objection; (d) Copies of any papers, briefs, or other documents upon which your objection is based; (e) A list of all persons who will be called to testify in support of the objection, if any; (f) A statement of whether you intend to appear at the Final Approval Hearing, and, if you intend to appear at the Final Approval Hearing through counsel, the identity of all attorneys representing you who will appear; (g) A statement of your membership in the Settlement Class, including all information required by the Claim Form; and (h) A detailed list of any other objections you or your counsel has submitted to any class actions in any court, whether state or federal, in the United States in the previous five (5) years, or a statement that you and your counsel have not objected to any other class action settlement in any court in the United States in the previous five (5) years.
If you wish to object to the settlement and you do not serve a written objection containing all of the information listed above, you will not be permitted to object to the settlement and will be foreclosed from seeking any review of the settlement by any means, including but not limited to an appeal. Members of the Settlement Class who do not timely make their objections in this manner will be deemed to have waived all objections and will not be entitled to be heard at the Fairness Hearing.
You have the right to retain a lawyer at your own expense to file your objection. If your lawyer intends to appear at the Fairness Hearing, your lawyer must file and serve a notice of appearance with the Clerk of the Court.
COURT
CLASS COUNSEL
Clerk of the Court
United States District Court
District of New Jersey
402 East State Street
Trenton, NJ 08608
Steven L. Wittels Jeffrey A. Klafter
Wittels Law, P.C. Klafter Olsen & Lesser LLP
18 Half Mile Road 2 International Drive, Suite 350
Armonk, NY 10504 Rye Brook, NY 10573
AMBIT’S COUNSEL
Nicole L. Williams
Thompson & Knight LLP
1722 Routh Street, Suite 1500
Dallas, TX 75201
- Who is Class Counsel?
The Court has appointed the following lawyers to represent you and the Class: Steven L. Wittels, J. Burkett Mclnturff, and Tiasha Palikovic of Wittels Law, P.C. and Jeffrey A. Klafter and Fran L. Rudich of Klafter Olsen & Lesser LLP.
Class Counsel will also ask the Court to authorize service awards of up to $2,500 each to five former Ambit customers who assisted in the prosecution of this action and provided important information used to achieve the settlement. To the extent the Court approves these service awards, they will be paid out of the legal fees and litigation expenses approved for Class Counsel by the Court.
Class Counsel have worked for more than three years without pay or any guarantee of obtaining a recovery for Ambit's current and former New York, Maryland, and New Jersey customers as described in this settlement notice. In class actions like this one, it is customary for the attorneys representing a class to request a legal fee, which is typically 33.33% of the value of the benefits provided to the class, and those fees can reduce the total amount available to the class. In this case, however, Ambit has agreed (subject to Court approval) to reimburse Class Counsel for certain legal fees; and such payments will not reduce the recovery to Class Members under the formulas described above in paragraph 6. Class Counsel will ask the Court for reimbursement of legal fees, inclusive of both reasonable litigation costs and service awards, of just 29.5% or less ($1,080,000) of the aggregate settlement value estimated by Class Counsel for all eligible Class Members. You are not personally responsible for payment of attorneys' fees or expenses to Class Counsel.
Top - When and where will the Court decide whether to approve the Settlement?
The Court will hold a Fairness Hearing on the fairness and adequacy of the proposed settlement and its terms, and to consider Class Counsel’s request for an award of attorneys' fees and expenses and service awards on July 1, 2020. The Court has ordered that in light of the COVID 19 pandemic, the Final Class Action Approval hearing will take place telephonically before the Honorable Peter G. Sheridan on July 1, 2020 at 12.00 p.m. Eastern time, and the dial-in number is: (888) 684-8852, code 1757868#, should class members wish to be heard.
You do not have to appear at this Fairness Hearing. At or after the hearing, the Court will decide whether to approve the settlement and the requests for awards, fees, expenses, and costs. We do not know how long a decision by the Court will take to be made.
Top - How do I get more information about the Settlement?
You can contact the Claims Administrator at 1-866-860-8927; you can also review the case documents by clicking here.
You can contact Class Counsel listed above. You can also request to see the court file for Little v. Ambit Energy Holdings, LLC, (Civil Action No. 3:16 Civ. 08800) during regular business hours in the Clerk's Office at 402 East State Street, Trenton, NJ 08608 and for Lazarek v. Ambit Energy Holdings, LLC et al., (Civil Action No. 6:15 Civ. 6361) in the Clerk's Office at 100 State Street, Rochester, NY 14614.
Please do not contact the clerk of the court, the judge, or Ambit Energy with inquiries about the settlement.
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