Otis Singleton
The Ohio Electricity Litigation Prepaid Mastercard is a virtual prepaid card that was sent out to eligible FirstEnergy customers as part of a settlement in a federal class-action lawsuit. The lawsuit was filed against FirstEnergy and its subsidiaries for their involvement in a bribery scandal, which resulted in some customers paying more than they should have for their electricity. The settlement totals \$49 million, and eligible customers can expect to receive payments of up to \$250.
| Characteristics | Values |
|---|---|
| Reason | FirstEnergy's involvement in the state's largest corruption scandal |
| Eligible recipients | Customers of FirstEnergy's three operating companies in Ohio who paid any rates, charges, fees, tolls, or other costs pursuant to HB 6 from January 1, 2020, to June 22, 2022 |
| Payment method | Virtual prepaid Mastercard, physical debit card, or check |
| Payment amount | Total of $49 million, ranging from $1 to $250 per customer |
| Email sender | [email protected] |
| Email subject | "Ohio Electricity Litigation: Your Digital Payment is Ready." |
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What You'll Learn
Legitimacy of the prepaid Mastercard
The legitimacy of the prepaid Mastercard is related to the legitimacy of the settlement it is disbursing. In this case, the prepaid Mastercard is legitimate. The Ohio Electricity Litigation case is a federal class-action lawsuit against FirstEnergy and its operating companies in Ohio, namely Toledo Edison, Cleveland Electric, and Ohio Edison. The lawsuit was filed because of the defendants' involvement in the state's largest corruption scandal, which led to customers paying excessive electricity charges.
The plaintiffs in the lawsuit claimed that the defendants engaged in a racketeering scheme to influence the passage of HB 6, resulting in higher electricity charges for some Ohio residents. The defendants denied any liability, but a settlement was reached, with FirstEnergy agreeing to pay $49 million to the Settlement Class. This settlement includes a monetary payment to the Settlement Class, which consists of customers who paid any rates, charges, fees, tolls, or other costs to the defendants pursuant to HB 6 from January 1, 2020, to June 22, 2022.
The settlement funds began being distributed on July 31, 2023, with eligible recipients receiving an email from [email protected]. The email contains a link to redeem the payment, which can be received in the form of a virtual prepaid Mastercard for amounts of $250 or less. This method of payment was chosen as it is the "easiest and quickest way" to get funds to customers, according to the settlement website.
While some people may have suspected that the emails and prepaid cards were part of a scam, the Cleveland Better Business Bureau has confirmed their legitimacy. The BBB stated that the mailings from Ohio Electricity Litigation and Tremendous are a "rare example of a legitimate utility-related solicitation." Therefore, eligible customers can be assured that the Ohio Electricity Litigation prepaid Mastercard is legitimate and not a scam.
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Who is eligible for the settlement
The Ohio Electricity Litigation settlement is the result of a federal class-action lawsuit against FirstEnergy Corp. The lawsuit alleged that FirstEnergy, along with several other defendants, engaged in a racketeering scheme to influence the passage of House Bill 6 (HB 6), which resulted in some Ohio residents paying excessive charges for electricity. The settlement includes a monetary payment of $49 million to be shared by all FirstEnergy customers.
So, who is eligible for the settlement? According to the official settlement website, you may be a member of the Settlement Class if you paid any rates, charges, fees, tolls, or other costs to Toledo Edison, Cleveland Electric, or Ohio Edison pursuant to HB 6 or any recovery mechanism approved by the Public Utilities Commission of Ohio (PUCO) from January 1, 2020, through June 22, 2022. This includes both residential and commercial customers of FirstEnergy's three operating companies in Ohio: Toledo Edison, Cleveland Electric, and Ohio Edison.
If you believe you are eligible for the settlement, you should have received an email from [email protected] with the subject "Ohio Electricity Litigation: Your Digital Payment is Ready." This email contains a link to a redemption website where you can claim your payment. If you accidentally deleted the email, you can visit the official settlement website, https://www.ohioelectricitylitigation.com, or call the settlement administrator hotline at 877-888-9895 for more information.
It's important to note that the settlement payments range from $1 to $250, with larger sums likely going to large commercial customers. The average payment is about $16. If you believe you are eligible but have not received any communication about the settlement, you can reach out to the settlement administrator or visit the official website for more information.
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The FirstEnergy scandal
The scandal came to light in 2020, and Householder was arrested and charged with racketeering in July of that year. The scandal also implicated and charged Sam Randazzo, the former chair of the Public Utilities Commission of Ohio, who accepted a $4.3 million bribe and committed suicide in 2024. In addition, the former FirstEnergy CEO, Charles E. Jones, was charged by the SEC with fraud in connection with the scandal.
The fallout from the scandal included the termination of a naming rights deal for the Cleveland Browns Stadium, which was known as FirstEnergy Stadium. FirstEnergy was fined $230 million and agreed to pay a civil penalty of $100 million to the SEC and $3,860,000 to the United States Treasury. Householder was convicted of racketeering conspiracy in March 2023 and sentenced to 20 years in prison.
In 2023, FirstEnergy customers began receiving emails notifying them of a distribution from a net settlement available via a virtual prepaid card or a physical debit card. This settlement was $49 million, with payments ranging from $1 to $250, depending on the customer's usage. The settlement was the result of a class-action lawsuit, Smith v. FirstEnergy Corp., which included all customers of FirstEnergy's three operating companies in Ohio who paid rates and charges pursuant to HB 6.
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How to receive the settlement payment
If you were a FirstEnergy customer in Ohio and paid rates, charges, fees, tolls, or other costs to Toledo Edison, Cleveland Electric, or Ohio Edison from January 1, 2020, through June 22, 2022, you may be eligible for a settlement payment from a federal class-action lawsuit. The lawsuit alleged that FirstEnergy engaged in a racketeering scheme to influence the passage of HB 6, resulting in some customers paying excessive charges for electricity.
The settlement is $49 million, and payments started being distributed on July 31, 2023. Eligible recipients will receive an email from [email protected] with the subject "Ohio Electricity Litigation: Your Digital Payment is Ready."
If you are entitled to a payment of $250 or less, you will receive a digital payment in the form of a virtual prepaid Mastercard. To access your payment, click the "Get payment" button in the email, which will take you to the redemption website, reward.tremendous.com.
You can add the virtual prepaid Mastercard to digital wallets like Google Pay, Apple Pay, or Samsung Pay for online purchases. You can also load it to online retailers like Amazon, Target, or Starbucks. Additionally, you can use the card in stores like a credit card, but note that some retailers do not allow split payments if the total purchase exceeds the card balance.
If you prefer to receive your payment through a different method, such as a physical debit card or check, you can contact the settlement administrators through their official website, https://www.ohioelectricitylitigation.com/, or by calling the settlement administrator hotline at 877-888-9895.
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The average settlement payment
The Ohio Electricity Litigation prepaid Mastercard is a result of a federal class-action lawsuit settlement against FirstEnergy, an Ohio-based utility company. The lawsuit, known as Smith v. FirstEnergy Corp., et al., alleged that FirstEnergy was involved in a bribery scandal, which led to customers paying excessive charges for electricity. The settlement amount is $49 million, and it is being shared by all FirstEnergy customers.
Customers who are eligible for the settlement payment will receive an email with the subject "Ohio Electricity Litigation: Your Digital Payment is Ready." The email will contain instructions on how to access the digital payment, which can be added to digital wallets or used for online purchases. For those who prefer a different form of payment, such as a physical debit card or check, there is an option to contact the settlement administrators to make alternative arrangements.
It is important to note that the settlement payments are not a scam, as confirmed by the Cleveland Better Business Bureau and one of the attorneys representing the plaintiffs in the class-action suit, Dennis E. Murray, Jr. The settlement website also provides information and a hotline for customers to verify the legitimacy of the payments.
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Frequently asked questions
It is a virtual prepaid Mastercard that was sent to eligible FirstEnergy customers as part of a settlement from a federal class-action lawsuit. The lawsuit was against FirstEnergy's involvement in the state's largest corruption scandal, which caused some Ohio residents to pay excessive charges for electricity.
Customers who paid any rates, charges, fees, or tolls to Toledo Edison, Cleveland Electric, or Ohio Edison from January 1, 2020, through June 22, 2022, are eligible to receive the prepaid Mastercard.
The settlement was for \$49 million, and individual payments range from \$1 to \$250. The average payment is about \$16.
Eligible customers will receive an email from [email protected] with the subject "Ohio Electricity Litigation: Your Digital Payment is Ready." Clicking the "Get payment" button in the email will take you to the redemption website where you can access your virtual prepaid Mastercard.
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