Current Report Filing (8-k)
July 10 2017 - 8:21AM
Edgar (US Regulatory)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 5, 2017
GENIE ENERGY LTD.
(Exact name of registrant as specified in
its charter)
Delaware
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1-35327
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45-2069276
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(State or other jurisdiction of
incorporation)
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(Commission File Number)
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(IRS Employer
Identification No.)
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520 Broad Street
Newark, New Jersey
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07102
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including
area code: (973) 438-3500
Not Applicable
(Former name or former address, if changed
since last report.)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
(see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Indicate by check mark whether the
registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or
Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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Item 8.01 Other Events
.
On July 5, 2017, Genie Energy
Ltd. (the “Registrant”) and its subsidiaries, IDT Energy, LLC, Genie Retail Energy, Inc. and Genie Energy International
Corporation, Inc. (collectively, the “Defendants”) entered into a class action settlement agreement (the “Settlement
Agreement”) with the class action plaintiffs Louis McLaughlin, Anthony Ferrare and Deborah Aks, acting individually and on
behalf of the entire class, in the lawsuits entitled
McLaughlin v. IDT Energy, Inc.
(Civil Action No. 14 Civ. 4107),
Ferrare
v. IDT Energy, Inc.
(Civil Action No. Civ. 4658) and
Aks v. IDT Energy, Inc.
, (Civil Action No. L-04936-14) (the “Lawsuits”),
currently pending in the United States District Court for the Eastern District of New York, United States District Court for the
Eastern District of Pennsylvania and Superior Court of New Jersey Law Division, Essex County, respectively. In these actions, which
were brought shortly after the winter of 2013-2014, the named plaintiffs alleged that they and other former and current electric
or gas customers of Defendants were injured as a result of Defendants’ allegedly unlawful sales and marketing practices.
During that winter, due to the unusually severe cold weather, wholesale energy commodity costs rose dramatically, contributing
to an usually high volume of customer complaints throughout the industry, particularly for suppliers with variable rate plans.
Defendants took voluntary steps to address the impact on its customers from the “polar vortex” and is dedicated to
customer satisfaction, The Registrant does not believe that there was any wrongdoing on its part, and is entering into this settlement
to further its efforts to address its customers’ concerns.
Under the Settlement Agreement,
the Registrant has agreed to pay certain amounts (the “Settlement Payment”) to resolve the Lawsuits and obtain a release
of claims that were asserted or could be asserted in the Lawsuits or that are related to or arise out of the conduct alleged in
the Lawsuits or similar conduct, wherever it may have occurred. The Settlement Payment includes payments to customers who timely
make a claim (the “Class Members”), class counsel, and the named plaintiffs as well as the cost of a claims administrator
for administrating the claims process.
Class Members are to receive
settlement payments in the form of a check or credit against future invoices. The amount of the settlement payment will depend
on a variety of factors, including whether the Class Member was an electric, gas or dual meter customer, energy usage level, and
the length of time that the Class Member was a customer of Defendants. Electric customers will receive cash payments of between
$2.50 and $3.50, depending on usage level, for each month Defendants supplied electricity up to a maximum of 15 months or a credit
of between $4.25 and $5.25, depending on usage level, for each month Defendants supplied electricity up to a maximum of 20 months.
Gas customers will receive cash payments of between $0.75 and $1.00, depending on usage level, for each month Defendants supplied
gas up to a maximum of 15 months or a credit of between $1.70 and $2.10, depending on usage level, for each month Defendants supplied
gas up to a maximum of 20 months. Class Members who received certain rebates from Defendants will also have the right to elect
to have their rebate recalculated or to receive a $1.00 cash payment or $2.00 invoice credit. The actual amount to be paid out
will depend on several factors, including the number of customers who elect to be seek the settlement payments to which they are
entitled. The Registrant estimates, based in part on historical participation rates, that its total Settlement Payment will be
approximately $9 million.
The Settlement Agreement is subject
to entry of a final order by the court approving the Settlement Agreement.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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GENIE ENERGY LTD.
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By:
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/s/ Howard S. Jonas
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Name: Howard S. Jonas
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Title: Chief Executive Officer
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Dated: July 10, 2017
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