Stream, a leading direct selling company and provider of essential services, on October 16 realized a key appellate victory in its ongoing Federal class action litigation before the U.S. Fifth Circuit Court of Appeals in New Orleans.
Arising out of oral arguments held during February 2015, the Fifth Circuit panel voted to decertify a purported class of plaintiffs whose two named representatives alleged violations of the Racketeer Influenced and Corrupt Organizations Act. This appellate ruling reverses a prior January 2014 order of the U.S. District Court for the Southern District of Texas that erroneously certified a class of plaintiffs consisting of current and former Stream Independent Associates.
The Federal class action lawsuit in question alleges that Stream operates a pyramid scheme in violation of Federal racketeering laws. Stream has vehemently denied these charges and steadfastly maintains that the company’s Independent Associates sell essential services (including energy, mobile and protective services) in a legal and ethical manner.
“We are pleased with the court’s decision and appreciate its careful and considered analysis. There is no doubt that Stream sells real services through a proven and efficient network marketing model that incents our sales force of Independent Associates to gather customers on our behalf across America. We look forward to the end of this nagging litigation and will continue to doggedly defend our good name,” said Mark “Bouncer” Schiro, president and CEO of Stream.
The two remaining plaintiffs have indicated their desire to file a petition for rehearing en banc with the Fifth Circuit, thereby requesting that the matter be reconsidered by all active justices serving the Fifth Circuit. The case will only be reheard if a majority of the 15 active justices now sitting on the Fifth Circuit so agree.
Stream (Stream Energy), headquartered in Dallas, Texas, is a leading nationwide provider of essential services, including Energy Services, Mobile Services and Protective Services. Stream innovated the energy market in 2005 by applying a direct selling model to energy, generating more than $7 billion in total revenue in just ten years. A consistently ranked top direct selling company globally, Stream provides its Independent Associates with the opportunity to earn additional income through such product sales.
Get more information, facts and figures about Kynect, click here for the Kynect overview.