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$12 Million Settlement with Alternative Retail Electric Supplier Direct Energy Services, LLC

$12 Million Settlement with Alternative Retail Electric Supplier Direct Energy Services, LLC
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On April 16, 2025, Cook County Circuit Court Judge Allen Price Walker approved a Consent Decree that settled a consumer fraud lawsuit brought by the Illinois Attorney General against Direct Energy Services, LLC (“Direct Energy”).  The lawsuit alleged that Direct Energy, an alternative retail electric supplier, engaged in unfair and deceptive sales and marketing practices and deceived Illinois consumers into switching from their public utility companies to more expensive contracts with Direct Energy. The settlement requires Direct Energy to pay $12 million and to cease marketing activities in Illinois until December 1, 2025.  Should Direct Energy resume marketing after December 1, 2025, it also agreed to monitoring by an independent monitor, additional reporting requirements, and employee training to prevent future violations.  A copy of the Consent Decree may be accessed here.  A copy of the Illinois Attorney General’s press release is available here.

Miner, Barnhill & Galland, P.C., along with Illinois-based firms Edelson PC and Hughes Socol Piers Resnick & Dym, Ltd., have been designated as Special Assistant Attorneys General (“SPAAGs”) to assist in the Direct Energy matter.  MBG attorneys working on this matter are Benjamin Blustein, Robert Libman, Matthew Owens, Paul Balik, Bernardo Lopez, and Allie Lee.

Gadiel Castro-Zapata$12 Million Settlement with Alternative Retail Electric Supplier Direct Energy Services, LLC