Phillips 66 fined $800 Million in Biofuel Trade Secrets Case

According to a California court document, U.S. refiner Phillips 66 has been ordered to pay Propel Fuels $820 million in damages after stealing trade secrets from the company to improve its renewable fuel capabilities.

On Wednesday, a state court in Alameda in California ordered Phillips 66 pay $195 in punitive damages in addition to the $604.9 in compensation that was ordered by a separate jury.

"In summary, this court finds Phillips 66's conduct to be'reprehensible.' From a business standpoint. The evidence presented at trial shows that Phillips 66 abused its bargaining position during due diligence to take advantage of Propel Fuels.

A California jury ruled in October that Phillips 66, based in Houston, stole trade secrets to gather information for a possible acquisition. Then they used this information to start a rival business.

A Phillips 66 spokeswoman said, "We have received the order. We are evaluating all of our legal options."

Sacramento-based Propel Fuels is a specialist in low-emissions diesel and gasoline. Phillips 66 approached Propel Fuels about acquiring them in 2017, to improve its renewable fuels business in California. Phillips 66 suddenly backed out of the deal in 2018, and started selling its own renewable fuels in 2019.

Propel Fuels filed a lawsuit against Phillips in 2022 accusing it of illegally using trade secrets that were shared between the biofuel company and Phillips, including financial data, business strategies, and the biofuel company's own trading secrets.

Michael Ng, attorney at Kobre & Kim & co-counsel of Propel Fuels said: "This is a result of years' worth of perseverance on the part of our client." It was important for them to stand up for not only themselves but also for other innovators. (Reporting and editing by David Gregorio; Nicole Jao, New York)

(source: Reuters)