What Are Some Facts About the Ambit Energy Scam?


Quick Answer

Ambit Energy customers represented by the national consumer rights firm filed a lawsuit against the company in March 2015, states Hagens Berman. Attorneys representing these customers state that the energy company has defrauded its 13 million customers.

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The lawsuits alleges that Ambit Energy the provider of electricity and natural gas services illegally operates a massive pyramid scheme, in which Ambit uses customers as consultants to market to friends and family, lures consumers to switch energy providers with the promise of lower rates, and causes the rates to increase, notes Hagens Berman. According to the complaint, Ambit’s marketing methods preach consistency and savings while failing to warn customers of the factors affecting Ambit’s variable energy rates. In effect, Ambit hedges its exposure to fluctuating energy prices by placing the variable burden onto customers.

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