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 www.businessforhome.org 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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