FeganScott’s class action lawsuit against Puerto Rico Electric Power Authority (PREPA, in Spanish AutorÍdad de Energia Eléctirica, AEE), alleges that PREPA accepted non-compliant fuel oil while charging plaintiffs prices for compliant fuel oil.
The suit claims that PREPA was provided millions of barrels of fuel oil for the combustion of electricity under the guise the fuel oil met the specifications of contracts between PREPA and its fuel oil suppliers as well as specifications set by the EPA. The oil was allegedly accepted by PREPA in exchange for undisclosed kickbacks or commissions, and PREPA passed the cost of the non-compliant fuel oil to the plaintiffs on their regular monthly electricity bills.
The lawsuit seeks to represent anyone who paid for electricity in Puerto Rico during from January 1, 2002 to present and asks the court to award damages caused by the defendants’ racketeering activity and fraudulent scheme.
On March 31, 2016, the Court denied in part Defendants’ motions to dismiss and allowed plaintiffs’ RICO claims to proceed.
On September 30, 2018, the Court granted class certification, certifying a class of PREPA customers.
On July 2, 2017, Puerto Rico initiated bankruptcy proceeding that overlaps with our certified class claims against PREPA. Accordingly, on September 17, 2020 the class representatives filed an Adversary Proceeding in the bankruptcy seeking an order declaring that they have the right to continue pursuing their claims against PREPA and their co-conspirators.