A class action against a Texas-based energy supplier will proceed in New York state court, not New York federal court, after a federal judge ruled the controversy is a local one over which federal jurisdiction doesn’t apply.

The plaintiffs sued Texas-based Ambit Energy Holdings LLC, Ambit New York LLC, which was formed under New York law, and other defendants. The plaintiffs allege Ambit violated New York’s consumer protection law and committed unjust enrichment by promising customers they would pay at least one percent less by buying energy from Ambit instead of another provider.

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