Ambit Energy Lawsuit; Scam or Illegal?

by admin on May 27, 2011

The Texas based energy giant Ambit Energy was hit with a lawsuit for over a billion dollars on the 24 of May 2011. The case involves Nicole Gubin and BH Seven LLC. Claims of federal racketeering, unfair business practices and fraud have been made against Ambit. A potential class action lawsuit against Ambit Energy is not a surprise since most MLMs have them all the time.

Gubin, an independent agent for Ambit Energy is also claiming she was discriminated against because she is Jewish and a woman. $13 million in attorney fees along with $600 million compensatory damages, $250 for both punitive damages and liquidated damages is sought by the plaintiff.

The website reports that Robin Stevens, a representative for Ambit, said his company has “done nothing to defame, defraud or otherwise damage Ms. Gubin, and we are confident these allegations as stated will be shown to be groundless and without merit.” The Ambit Energy lawsuit will hurt the company and the industry no matter who wins the case.

Ambit Energy has been one of the fastest growing companies in the US since 2000. The company sells electricity services to many of the deregulated states in the US.

The MLM side of the company has been called a “Scam” by many blogs on the internet. Many complaints from former employees can be found on the web.

Affects on Texas Electricity Rates

If Gubin wins the Ambit Energy lawsuit people could see an increase in prices because of what the new demand for electric companies does to the lack of trust consumers will have in Ambit.

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{ 1 comment… read it below or add one }

Kami August 16, 2011 at 10:33 pm

Ambit energy is a SCAM. I signed up in November of 2010 and didnt actually receive anything from them until January 2011. At first I saved roughly $20 a month. It was too good to be true. July hit and all of a sudden I got billed for $175.25 (my bill was $65 each month prior). I called Ambit and they said “sorry we supply the gas but you have to talk to National Grid about this. So I called National Grid and noticed that they have not read our meter in a year. Mind you about a month before we got a letter from Ambit saying that they noticed that we are using more gas then they thought. My gas meter is in the house so there is no way anyone can read my meter without me letting them in the basement. So I gave my new reading to National Grid and they advised me to not pay and that they would mail me a revised bill because we used LESS gas than they estimated. We waited and 11 days later we got the new one. In 11 days Ambit energy charged us another $175.25 on top of the $175.25 they bill 11 days before. Mind you the first bill said balance due to company $364.68 and the revised bill says balance due in your favor $86.85. I called Ambit and no one can help or even explain why they are doing this (not even the supervisors). No one in Ambit gets back to you when they say they will and no one can help in my situation. All they tell me is to pay the $350.00 and they will compensate us when/if they find reason to refund any payment. I do not trust Ambit in the least they are a SCAM!!

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