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September 16, 2019Cart

Business

by Fairfield County Business Journal
by FCBJ

Norwalk’s Viridian Energy settles class action suit for $18.5M

A federal judge in Bridgeport has given preliminary approval to an $18.5 million class action settlement involving claims that Norwalk’s Viridian Energy overcharged its customers.

The preliminary approval from U.S. District Judge Stefan Underhill involves two classes

claiming that the company misled customers about its variable rate plans, and that promises of significant savings from switching electric service to Viridian went unfulfilled.

The first, “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 second, “above-average usage” class, would cover anyone enrolled in the same kind of Viridian plan, but whose average annual utilization was above 25,000 kilowatt hours or 2,500 therms.

The cash benefit for members of the average usage class cannot exceed $425 per valid claim, while it cannot exceed $500 per valid claim for the above-average usage class member.

The period for both classes is July 1, 2009 through Dec. 31, 2016.

Final approval for the $18.5 million settlement is expected to be made at a June 25 hearing in Bridgeport.