Cobb EMC Drama Nearing An End?

It appears a settlement has been reached in the years long battle over Cobb EMC and a few insiders’ attempt to spin off profit making parts that “may” have been designed to benefit them over the members.

The Daily Report has the details (link but subscription required):

Six years of bitter legal battles concluded Thursday in a courtroom full of lawyers who gathered before Cobb County Superior Court Judge J. Stephen Schuster to announce a preliminary $98 million settlement of a class action lawsuit against the Cobb Electric Membership Corp. over sharing profits with customers.

In a deal described as the largest known settlement in the county’s history, the money will go to two classes of EMC members—current and former—to be paid by a claims administrator. A website and call center are being developed. The amount that will go to lawyers, which will come from the $98 million, is yet to be determined. For legal fees and expenses, the attorneys will have to seek approval from the mediator who brought the parties together, Michael Bowers, a partner with Balch & Bingham and former Georgia attorney general.

The article goes on to mention that the settlement would likely show an average refund to members of about $109, but cautioned that due to the highly variable amount of electricity used by each member as well as their length of being a customer, refunds will vary widely.

 

6 comments

  1. Scott65 says:

    It seems like I first heard about this longer than 6 years ago…seems like it has been going on a lot longer than that

    • bgsmallz says:

      I knew Cobb EMC back in the 80’s when they were still a Run DMC cover band…then they went ‘mainstream’ and sold out to the man.

    • Dave Bearse says:

      Indeed the lawyers won.

      Where’s Cobb EMC going to get $98M? From it’s current membership of course. Most of its current members were past members, so in large part it will be members paying themselves, except that the attorneys will take a cut, natch.

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