Dynegy Inc., Reliant Energy Inc. and more than 20 other U.S. energy suppliers can be sued in one lawsuit by traders who claim the companies manipulated natural-gas prices, a New York judge ruled Thursday.
Judge Victor Marrero certified the class-action lawsuit after denying the defendants’ request that it be dismissed, Bernard Persky, a lawyer with Lebaton Sucharow & Rudoff LLP, said in a statement. The traders are attempting to recover losses that are to be determined at trial.
The companies generated millions of dollars in illegal profits by manipulating gas prices between 2000 and 2003, using bogus trades that inflated demand and reporting false and misleading information, the suit said. An investigation by the Commodity Futures Trading Commission prompted at least 19 companies to pay $217 million in fines, according to the suit.
Robert Gracey of Madrid, one of three lead plaintiffs, said the manipulation of New York Mercantile Exchange gas contracts led to losses on his short positions, when he bet the price would drop.
Oneok Energy Services Co., responding on behalf of the defendants, denied the accusations.
“Plaintiffs suffered no damages, to the extent their Nymex positions were similar to that of any defendant when any alleged act or omission occurred,” it said.
Companies named in the suit include AEP Energy Services Inc., American Electric Power Co., Aquila Energy Marketing Corp., Aquila Merchant Services Inc., Calpine Energy Services LP, Cinergy Marketing & Trading LP, CMS Field Services, CMS Marketing Services & Trading and Cook Inlet Energy Supply LLC.
The others were Coral Energy Resources LP, Duke Energy Trading & Marketing LLC, Dynegy Marketing & Trade, El Paso Merchant Energy LP, Enserco Energy Inc., Entergy-Koch Trading LP, E Prime Inc., MidAmerican Energy Co., Mieco Inc., Oneok Energy Marketing & Trading Co., Oneok Inc., Reliant Energy Services Inc., Sempra Energy Trading, WD Energy Services, West Coast Power LLC, Williams Cos., Williams Energy Marketing & Trading Co. and DOES 1-100.
