Phillips 66 hit with $604.9 million US verdict in fuel trade-secrets case
Oct 16 (Reuters) – Energy company Phillips 66 (PSX.N), opens new tab owes biofuel maker Propel Fuels $604.9 million in damages for stealing Propel’s trade secrets to build up its renewable-fuel capabilities, a jury in a California state court decided on Wednesday.
The jury in Oakland agreed with Propel that Houston-based Phillips stole the company’s secrets under the guise of gathering information for a potential acquisition and then used them to create a competing business.
A spokesperson for Propel confirmed the award. A spokesperson for Phillips 66 said the company was disappointed with the verdict but remained confident in its case and would “carefully evaluate all of our legal options moving forward.”
Sacramento-based Propel specializes in low-emission gasoline and diesel fuel. According to its lawsuit, Phillips approached Propel in 2017 about buying the company and enhancing its renewable fuel business in California, where the state incentivizes producing and selling low-carbon fossil fuel alternatives.
Phillips abruptly withdrew from the deal in 2018 and began selling its own renewable fuel in 2019, according to Propel. Propel sued Phillips in Alameda County court in 2022, accusing Phillips of unlawfully using trade secrets including financial data and business strategies that the smaller company had shared during their talks.
“Phillips 66 is making a multibillion-dollar bet on the California renewable fuel market, premised on Propel’s trade secrets,” Propel said in the suit. “Prior to receiving Propel’s confidential information, Phillips 66 had not only sold no renewable fuel, it also knew nothing about the business.”
Source from Reuters: https://www.reuters.com/business/energy/phillips-66-hit-with-6049-mln-us-verdict-fuel-trade-secrets-case-2024-10-17/