Stream Energy and Ignite

October 2018: A federal judge granted final approval of the settlement agreement.

June 2018: A federal judge preliminarily approved a settlement agreement that would resolve this lawsuit. According to the proposed settlement terms, class members may choose to receive a cash payment in the amount of 20% of the difference between the total amount they paid Ignite and the total amount Ignite paid them. Class members who do not select the cash payment (and do not opt out of the settlement) will be automatically enrolled to receive:

• Monthly referral payments for every new customer that enrolls in Stream Energy’s electricity or gas plan through them before December 31, 2019,
• Twelve months of free use of Stream’s marketing service website,
• Free admission to the 2019 Ignition conference if they contact Ignite in writing at least 30 days before the conference, and
• Free reinstatement for anyone whose Independent Associate status was canceled or terminated.

The proposed settlement terms do not address plaintiffs’ allegation that the company operates as a pyramid scheme. A final fairness hearing is scheduled for October 4, 2018.

March 2018: The parties notified the Court that they reached a settlement agreement.

October 2017: The U.S. Supreme Court denied An order the U.S. Supreme Court issues to review a lower court’s judgment., meaning that the Fifth Circuit’s decision to certify the class stands and that the case is returning to the trial court for proceedings.

April 2017: Defendants/Appellants filed a Petition for a Writ of An order the U.S. Supreme Court issues to review a lower court’s judgment. asking the U.S. Supreme Court to hear the case.

September 2016: The Fifth Circuit Court of Appeals affirmed the District Court’s decision to certify the class, meaning that the case may proceed as a class action.

May 2016: TINA.org filed an amicus curiae brief in support of the District Court’s decision to certify the class. To read TINA.org’s brief, click here.

March 2016: The Fifth Circuit Court of Appeals granted the petition for rehearing en banc. The case will be heard the week of May 23, 2016.

November 2015: Plaintiffs filed a petition for en banc review (i.e., a rehearing by all of the judges of the Fifth Circuit, rather than the selected three-judge panel). TINA.org filed an (Latin for “friend of the courts.”) A person or organization that is not a party to a lawsuit but has a significant interest in the case and offers information that may be important to the court’s determination. brief supporting this petition. To read TINA.org’s brief, click here.

October 2015: The Fifth Circuit Court of Appeals – in a 2-to-1 decision – reversed the district court’s class certification decision finding that each class member’s reliance on the alleged misrepresentations is an individualized inquiry and that some class members theoretically knew before joining that the company was a pyramid scheme. The case was remanded for further proceedings. (Torres et al v. SGE Management, LLC et al, Case No. 14-20128, 5th Cir.)

January 2014: A federal district court judge certified the class on the basis that plaintiffs could establish their common reliance on the alleged misrepresentations by showing that the defendants were operating a pyramid scheme.

June 2009: A class-action lawsuit was filed against several defendants, including Stream Energy and its marketing arm Ignite for, among other things, allegedly operating a pyramid scheme and falsely representing that it is a “legitimate” business. (Plaintiffs filed an amended complaint in September 2011.) (Torres et al v. SGE Management, LLC et al, Case No. 09-cv-2056, S. D. TX.)

For more information about other class-action lawsuits regarding pyramid schemes and TINA.org’s coverage of the issue, click here.