Stream Energy Files Response to Lawsuit

Awhile back, a lawyer named Scott Clearman filed suit against Stream Energy, calling it a pyramid scheme. That prompted Stream’s founder, Rob Snyder, to call Clearman a clown in a bow tie. That didn’t make Scott Clearman very happy. Well, now Stream has filed an official response to the suit. You can read the entire thing here, or you can read the company’s press release after the jump. The high point: where Stream asks the court to throw out Clearman’s suit, essentially, because it is so “inarticulately drafted” (though I’m sure Stream’s attorneys would quibble with my condensation of their fine work).

Stream Energy and its Ignite marketing subsidiary today took action seeking dismissal of a class action lawsuit brought against the firm earlier this summer. Stream Energy and Ignite vigorously contend that the lawsuit is groundless and without merit and should be dismissed.

Set forth within today’s Motion to Dismiss filed with the Federal Southern District of Texas, Stream Energy makes several observations concerning the plaintiffs’ initial set of allegations.

– First, the plaintiffs’ carelessly-drafted lawsuit is replete with dozens of misstatements of material fact.

– Secondly, Stream Energy requested dismissal of this groundless lawsuit and on the basis that the plaintiffs had previously contractually agreed to resolve any disputes within the context of arbitration proceedings.

– Finally, Stream Energy asked the Federal District Court to dismiss plaintiff’s lawsuit due to the reality that the two complaints previously publicized by the self-styled class action specialist firm at the center of the suit were so inarticulately drafted that such filings fail to properly set forth the elements required to support plaintiffs’ absurd civil RICO action.

Stream Energy and Ignite are extremely proud of the firm’s operational strength as well as its excellent track record with state regulatory agencies. Stream Energy serves as a Provider of Last Resort at the request of Public Utilities Commission of Texas, attesting to Stream Energy’s standing and repute within the state’s deregulated retail electricity market.

Stream Energy was also recently featured as one of Inc. magazine’s fastest growing companies in the U.S. Moreover, Ignite during 2008 was admitted as a full member in good standing to the highly regarded Direct Selling Association, which association further bolsters the soundness of its network marketing model.

Simply put, the direct selling models used by firms such as Stream Energy have been repeatedly found to be unquestionably legal. And the careless allegations of a plaintiff law firm seeking to realize economic windfall through a sensationalist lawsuit do not change that known reality.

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