Phillips 66 is hit with a $604.9 mln US judgment in fuel trade secrets case

A California state court jury ruled on Wednesday that energy company Phillips 66 owes Propel Fuels 604.9 million dollars in damages after stealing Propel’s trade secrets in order to improve its renewable fuel capabilities.

The jury in Oakland agreed that Phillips, based in Houston, stole Propel's secrets to gather information for an acquisition. They then used the information to create a rival business.

A spokesperson from Propel confirmed that the award had been given. Phillips 66 spokespersons did not respond immediately to a comment request.

Sacramento-based Propel is a specialist in low-emission diesel and gasoline. Phillips approached Propel about purchasing the company in 2017, and expanding its renewable fuels business in California. The state encourages the production and sale of low-carbon fossil alternatives.

According to Propel, Phillips pulled out of the deal abruptly in 2018, and started selling its own renewable fuels in 2019. Propel filed a lawsuit against Phillips at Alameda County Court in 2022. It accused Phillips of illegally using trade secrets, including financial data and strategies, that the smaller firm had shared with them during their discussions.

Propel claimed in its lawsuit that Phillips 66 was making a multi-billion dollar bet on California's renewable fuel market based on Propel’s trade secrets. Phillips 66 did not sell renewable fuel before receiving Propel's information. It also had no knowledge of the business.

Phillips denies the allegations.

(source: Reuters)