February 27, 2018- After allegedly overcharging customers, a $18.5 million settlement has been preliminarily approved against Viridian Energy. Establishing a Class Action settlement, U.S. District Judge Steven Underhill approved the agreement reached between Plaintiff’s counsel and Defendant Viridian in regards to the allegations of overcharging.  With the promises of big savings in their utilities bills, customers were left confused and angry once Viridian switched their energy service to a variable rate, thus increasing their monthly bills.

Class Member Steven Landau agreed to join Viridian Energy after hearing of their lower rates. After six months of service, Landau’s account was switched to a variable rate contract and his bills started to sky rocket. At times, he was paying over double his original bill. Within the variable contract, Viridian Energy agreed that rates would only change under “market based values”. Attorneys Jonathan Shub and Kevin Laukaitis successfully demonstrated this was not the case.

The class is broken into two parts; average usage and above-average usage. The average usage class would cover anyone enrolled in a Viridian variable rate electricity or gas plan with an average annual utilization rate of 25,000 or less kilowatt hours, or 2,500 or less therms. The above-average usage class would cover anyone enrolled in a Viridian variable rate electricity or gas plan with an average annual utilization of more than 25,000 kilowatt hours, or more than 2,500 therms. The settlement only includes customers who had contracts between July 1, 2009 and December 31, 2016.

More information on the case can be found reading Connecticut Law Tribune “Judge Preliminary Approves $18.5M Settlement with Viridian Energy” here.