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Lawsuit Settled: Cobb EMC to Pay $98M to Hundreds of Thousands

Four-year dispute between Marietta-based utility and its customers comes to a close.

Credit: Cobb EMC
Credit: Cobb EMC

The largest settlement in the history of Cobb County was reached Tuesday as Cobb Electric Membership Corp., will pay hundreds of thousands of its customers and their attorneys a combined sum of $98 million.

In 2010, the Marietta-based utility was sued by current and former co-op members, who said they were owed four decades worth of dividends that went elsewhere, including for Cobb EMC’s for-profit subsidiary businesses.

While many members of the Cobb EMC will receive small payouts in the range of $30 to $50, there were some big winners. According to The Atlanta Journal-Constitution, Cobb Schools was awarded a $1.8 million lump sum, while the second largest payment of $1.6 million went to the Cobb County government.

Many nonprofit organizations also scored payouts, including the YMCA of Cobb County, which will receive a $38,400 lump-sum settlement.

See the WSB-TV report attached with this report for more on this record settlement.

Erik Fernald February 27, 2014 at 06:51 AM
The customers/dividend payouts were supposed to be well over $200 million, this sets a terrible precedent for future lawsuits. String it out, make em' settle for less. $100 million plus bargain for Cobb EMC.
Raymond R. Reines March 05, 2014 at 07:54 PM
And now they have the audacity to stick a wireless electronic monitoring device on your home without our knowledge or consent, then charge an extortion fee to those members who want to maintain their privacy, security and health...in their own homes..!!!

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