Dallas, TX, November 10, 2009 --(PR.com
)-- Stream Energy Chairman Rob Snyder announced today that a federal lawsuit filed in Houston last summer against the retail energy provider and its Ignite marketing arm on behalf of a purported class has been dismissed by the U.S. District Court, Southern District.
U.S. District Judge Kenneth M. Hoyt ruled that the two plaintiffs at the heart of this Federal lawsuit -- former associates of the firm's Ignite sales force in Texas -- could not avoid their prior agreements to resolve any disputes with Stream Energy or Ignite through arbitration proceedings.
The case has therefore been dismissed by the Federal District Court and declared closed.
"I am pleased by Judge Hoyt's ruling and know the claims manufactured by the plaintiffs' lawyers at the heart of this lawsuit to be absurd," Stream Energy Chairman Rob Snyder said. "There was no legal basis for the matter in the first place," he added. "The direct sales business model used by Stream Energy and Ignite has been employed for many years by firms such as Mary Kay and repeatedly found to be unquestionably legal."
"We are extremely confident in the legal and operational soundness of both Stream Energy and Ignite," said Ignite founder Chris Domhoff. "Moreover, the fact that Stream Energy serves as a Provider of Last Resort to needy Texas consumers at the request of the Public Utilities Commission of Texas speaks to our firm's excellent standing within the state's deregulated retail electricity market."