Vitale v. USG&E Settlement

The Court authorized this website because you have a right to know about a proposed Settlement of a class action lawsuit that the Court has preliminarily approved. You are also entitled to know all of your options. If the Court grants final approval and any appeals from this final approval are resolved, a check will be distributed to you if you are a member of the Settlement Class.

The people who filed the class action, Patricia and Vincent Vitale (who are spouses), are the “Plaintiffs” and U.S. Gas & Electric, Inc. and Energy Service Providers, Inc. are the “Defendants.” The class action lawsuit (Patricia Vitale and Vincent Vitale, on behalf of themselves and all others similarly situated, v. U.S. Gas & Electric, Inc., d/b/a N.J. Gas & Electric, Civil Action No. 2:14-cv-4464-KM-MAH) claims that Defendants used improper marketing and sales practices (such as claiming Defendants’ rates were “competitive” with those of local utilities when, in fact, at least in periods of extreme or protracted bad weather, they allegedly were not), which induced persons and entities to switch their gas and/or electric services to Defendants.

Plaintiffs assert legal claims on behalf of themselves and all members of the Settlement Class, which includes:

Each person or entity in the States of New Jersey, Connecticut, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Ohio, and the District of Columbia, who, from January 1, 2008, to February 10, 2017, entered into a gas and/or electric supply service plan with Defendants or either of them or their subsidiaries.

AND

Each person or entity in the Commonwealth of Pennsylvania who, from January 1, 2008, to February 10, 2017, entered into a gas supply service plan with Defendants or either of them or their subsidiaries.

The settled claims include claims that Defendants violated the New Jersey Consumer Fraud Act, the New Jersey Truth-in-Consumer Contract, Warranty and Notice Act, or consumer protection statutes in other affected states. Plaintiffs seek injunctive relief (meaning, a Court order banning Defendants’ allegedly deceptive practices), declaratory relief (meaning, a Court order declaring that Defendants’ practices were deceptive), compensatory damages (meaning, money to Settlement Class Members), punitive damages (meaning, money meant to punish Defendants for their allegedly deceptive conduct), and attorneys’ fees and costs. Defendants deny Plaintiffs’ claims and charges, as well as any wrongdoing.

In settling these cases, Defendants have agreed to provide checks to members of the Settlement Class. More information can be found by contacting the Vitale v. USG&E Settlement Administrator at 1-866-800-6755; or by contacting Plaintiffs’ Lead Counsel, Bruce D. Greenberg, Esq., Lite DePalma Greenberg, LLC, 570 Broad Street, Suite 1201, Newark, NJ 07102, bgreenberg@litedepalma.com.

In a class action, one or more persons, called “Class Representatives,” sue on behalf of those with similar claims. All of these people together are called a “Class” and, individually, are called “Class Members.” The Court appointed Plaintiffs as Class Representatives for purposes of this Settlement. This Settlement resolves all of the factual and legal issues for all of the Class Members, except for those who specifically and timely ask to be excluded from the Class (“opt out”).

The Court did not decide in favor of either Plaintiffs or Defendants. Instead, both sides agreed to a Settlement. That way, they avoid the uncertainty and cost of a trial. The Class Representatives and attorneys appointed by the Court to represent the Class believe that the Settlement is in the best interests of all Settlement Class Members because the Settlement makes available $1,825,000 in benefits to Settlement Class Members and avoids the risk that the Class might ultimately lose this case and receive nothing at all.

WHO IS INCLUDED IN THE SETTLEMENT?

The Settlement Class includes all persons or entities in the States of New Jersey, Connecticut, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Ohio or the District of Columbia who, from January 1, 2008, to February 10, 2017, entered into a gas and/or electric supply service plan with U.S. Gas & Electric, Inc. and Energy Services Providers, Inc. or either of them, or their subsidiaries, as well as all persons or entities in the Commonwealth of Pennsylvania who entered into a gas supply service plan with Defendants or either of them, or their subsidiaries.

If you are a member of the Settlement Class, you will be sent a check in an amount equal to the Settlement Fund, plus any accrued interest, divided by the number of Settlement Class Members. You do not need to do anything in order to receive payment from the Settlement Fund. No claim form or other action is necessary.

If you are not a part of the Settlement Class as defined above, then you are not included in this Settlement and will not receive Settlement benefits.

Excluded from the Settlement Class are all judges to whom this lawsuit is assigned, and the staff of those judges. Also excluded are Defendants’ officers, directors and counsel of record, as well as all of Defendants’ employees. Any members of the Settlement Class who properly and timely exclude themselves will also be excluded from the Settlement Class, along with any persons or entities who have already had adjudicated in legal proceedings other than this lawsuit the same or similar claims as those alleged in this lawsuit.

If you are not sure whether you were included in the Settlement Class, you may contact Plaintiff’s Lead Counsel, Bruce D. Greenberg, Esq., Lite DePalma Greenberg, LLC, 570 Broad Street, Suite 1201, Newark, NJ 07102, bgreenberg@litedepalma.com.

THE SETTLEMENT BENEFITS: WHAT YOU CAN GET

The Settlement created a Settlement Fund of $1,825,000, and each Settlement Class Member will be sent a check in an amount equal to the Settlement Fund plus any accrued interest, divided by the number of Settlement Class Members. Settlement Class Members do not need to do anything in order to receive payment from the Settlement Fund.

Nothing. No claim form or other action was necessary. As long as you are a member of the Settlement Class, a check will be sent to you at the postal address that the Vitale v. USG&E Settlement Administrator has on file.

Payments of Settlement benefits were issued to Class Members in the form of a check on August 22, 2017, please allow 2 weeks for delivery. If you changed your postal address after Settlement benefits were issued, you should update your address by sending a letter to the Vitale v. USG&E Settlement Administrator at P.O. Box 3775 Portland, OR 97208-3775. Remember, payments were sent to the postal addresses that the Settlement Administrator has on file, so it is important that you update these addresses.

This Settlement was granted final approval on July 18, 2017. If you are a Settlement Class Member, you have released Defendants and their officers, directors, employees, and related corporate entities from any liabilities or claims. The specific terms of the release are set forth in the Parties’ Settlement Agreement, which you can review here.

THE LAWYERS REPRESENTING YOU

Yes. Lite DePalma Greenberg, LLC and Poulos LoPiccolo P.C. represent you and the other Settlement Class Members. The Court has appointed these two law firms as Plaintiffs’ Lead Counsel for this lawsuit. If you want to be represented by your own lawyer, you may hire one at your own expense.

The Court awarded attorneys’ fees and expenses to Plaintiffs’ Counsel in the amount of $500,000, to be paid by Defendants in addition to the amount payable to Settlement Class Members from the Settlement Fund. Importantly, none of these fees or expenses will come out of the cash or discounts to be received by Settlement Class Members. To earn these fees and expenses, Plaintiffs’ counsel spent time and resources investigating this lawsuit before filing it, filing this lawsuit, successfully opposing Defendants’ efforts to dismiss this lawsuit, and negotiating the Settlement. For these efforts, they have not been paid. They also faced the risk that they might never get paid for their efforts. Plaintiffs’ counsel also spent thousands of dollars of their own money pursuing these cases, and they faced the risk that those expenses might never be reimbursed.

Defendants are paying the costs of this and other notice to the Settlement Class; they are also paying to administer this Settlement. These notice and administrative amounts will not come out of the funds for benefits to Settlement Class Members. Finally, no Settlement Class Member will pay anything.

EXCLUDING YOURSELF FROM THE SETTLEMENT

No. If you opted out of the Settlement Class, you will not be eligible for any Settlement benefits, and have waived all rights to object to the Settlement. Similarly, if you filed an objection to the Settlement with the Court, you will not be able to exclude yourself from the Settlement Class.

This Settlement was granted final approval by the Court on July 18, 2017. If you are a Settlement Class Member who did not properly and timely exclude yourself from the Settlement Class, all claims that you may have had now or in the future against Defendants with respect to their marketing and sales practices and rates charged in connection with gas and electric services up until now have been WAIVED AND RELEASED, and you are unable to bring any such claims in the future on your own behalf, as provided in the Parties' Settlement Agreement.

THE COURT’S FAIRNESS HEARING

The Court held a Final Approval Hearing before the Honorable Kevin McNulty on July 18, 2017 at the United States District Court for the District of New Jersey, Martin Luther King Building & U.S. Courthouse, 50 Walnut Street, Newark, New Jersey 07102. At this hearing, the Court considered whether the Settlement was fair, reasonable, and adequate. The Court also considered any objections, and how much to pay Plaintiffs' Counsel. The Court decided to grant final approval of the Settlement, and the period for appeals has now passed, making this Settlement final.

IF YOU DO NOTHING

If you did nothing, you are a member of the Settlement Class, will receive a payment under the Settlement, and have waived and released all claims that you may have had, now or in the future, against Defendants, with respect to their marketing and sales practices and rates charged in connection with gas and electric services up until now.

GETTING MORE INFORMATION

This website summarizes the proposed Settlement. More details are in the Parties' Settlement Agreement. You can get a copy of the Settlement Agreement here.

If you think you may be a Settlement Class Member, you may review the papers on file in these lawsuits, including the Court's Order regarding the Preliminary Approval of Class Settlement and the Settlement Agreement, during weekdays (normal business hours) at the Clerk's Office, United States District Court for the District of New Jersey, Martin Luther King Building & U.S. Courthouse, 50 Walnut Street, Newark, New Jersey 07102. More information, including Settlement papers and other documents, are available by calling 1-866-800-6755.

PLEASE DO NOT CONTACT THE COURT DIRECTLY WITH QUESTIONS ABOUT THE SETTLEMENT.