KSG has filed a class action lawsuit against Gateway Energy Services Corporation and its parent company, Direct Energy Services, Inc. for overcharging thousands of consumers for their gas and/or electricity. The lawsuit was filed on May 24, 2017 in the United States District Court Southern District of New York, and the case is captioned: Bell v. Gateway Energy Services Corporation et al., Southern District of New York, Civil Case No. 7:17-cv-03893.
A copy of the Class Action Complaint can be found here.
KSG has been investigating claims against many deregulated energy companies, including Gateway Energy.
Our class action lawsuit involves deceptive acts and practices committed collectively by Gateway Energy and Direct Energy.
In the 1990s, many states, including New York, deregulated the market for retail natural gas and electricity supply, a major break with past policy. Prior to deregulation, gas and electricity were supplied and distributed solely by local utility companies. Over the last several years, a number of states have begun to change the regulations in the energy industry purportedly to enhance competition between energy providers. The notion is that competition would result in independent energy companies (“ESCOs”) being more aggressive than the utility in reducing wholesale purchasing costs and thereby lower retail residential rates.
Gateway Energy operates as an energy services company with market-based authority to sell at retail electricity and natural gas to residential and commercial end users in New York and other states. Collectively, Gateway and its parent company, Direct Energy, have taken advantage of the deregulation of the retail natural gas and electricity markets in New York by luring consumers into switching energy suppliers with false promises that they offer a market based variable rate for natural gas and electricity. Gateway Energy and Direct Energy make representations that are deceptive. In fact, their variable rates are substantially higher than those otherwise available in the energy market, and their rates do not reflect changes in the wholesale cost they pay for the natural gas and electricity they supply to their retail customers. As a result, many consumers are being fleeced millions of dollars in exorbitant charges for natural gas and electricity.
Our class action lawsuit seeks to represent a class of New York customers who were placed on a variable rate energy plan by Gateway Energy and Direct Energy.
Our investigation remains ongoing. KSG continues to investigate claims against Gateway (and other deregulated companies) in New York, and other states across the country for overcharging consumers for energy service. If you or someone you know switched energy suppliers (gas and/or electricity) to a deregulated energy company and was placed a variable rate plan by the company, please contact us for a FREE consultation. You may be eligible to be included in one of our class action lawsuits.
Kohn, Swift & Graf is a national leader in class actions, including complex consumer litigation. With experienced attorneys and a competent support staff, our firm strives to provide the highest quality of service to our clients. We treat each case with careful attention to ensure that consumers get the justice they deserve. KSG is centrally located in Philadelphia, PA. Our firm handles cases nationwide.