DALLAS, Nov 12, 2010 (BUSINESS WIRE) -- Stream Energy Chairman Rob Snyder has announced that the U.S. Court of Appeals, Eleventh Circuit, has upheld the dismissal of a federal RICO lawsuit filed in Georgia. The decision supports a previous ruling from the U.S. District Court, Northern District of Georgia, Rome Division.
In the newly released opinion, the Eleventh Circuit upholds the existing agreements with Ignite's associates to mandatorily resolve disputes in an arbitration setting. "We are very pleased to have this question clarified for our associates in Georgia, and to hopefully end this legal action," said Snyder.
The original lawsuit was filed against the retail energy provider and its marketing arm, Ignite, on behalf of a purported class. The Georgia case, filed by The Clearman Law Firm in October 2009, was a "copycat" action that followed an almost-identical lawsuit in Texas filed several months earlier. The Texas lawsuit was notably dismissed by the Federal District Court at Houston in November 2009. The dismissal is currently under review by the U.S. Court of Appeals, Fifth Circuit.
"We are pleased by this outcome before the Eleventh Circuit in regard to the Georgia suit and hope for a similar resolution before the Fifth Circuit in respect of the Texas case," said Snyder. "The business model using direct sales for customer gathering has proven time and again to be completely ethical, legitimate and legal. The Eleventh Circuit decision represents a victory for honest business owners against those who would manipulate in cynical fashion our legal system for personal windfall." About Stream Energy Since Rob Snyder, Pierre Koshakji and Stream Energy secured a Texas retail electric provider license in early 2005, the privately held company has become the longest-tenured direct selling energy company and one of the fastest growing companies in American business history. The company expanded from an initial Texas operational base into Georgia in 2008 to serve that state's deregulated natural gas market and into Pennsylvania in 2010 to service that state's electricity market. The Dallas-based company has more than 400,000 customers.
Stream Energy provides a full-service approach to customer relationships, supported by the firm's network marketing arm, Ignite, and a customer-advantageous pricing model.
SOURCE: Stream Energy CONTACT: Stream Energy Paul Thies, 214-800-4409 email@example.com or For Levenson & Brinker Public Relations Kelly Lane, 214-906-6491 firstname.lastname@example.org Copyright Business Wire 2010 -0- KEYWORD: United States
Texas INDUSTRY KEYWORD: Energy
Utilities SUBJECT CODE: Lawsuit