Phillips 66 trade secret lawsuit
Phillips 66 trade secret lawsuit: Phillips 66 (NYSE: PSX) has been ordered to pay $604.9 million in damages. A California jury found the energy company stole trade secrets from biofuel provider Propel Fuels. This was disclosed in an 8-K filing on Thursday.
The jury sided with Propel Fuels. They concluded that Phillips 66 misappropriated confidential information. This occurred under the pretense of exploring a potential acquisition. Phillips 66 then used that knowledge to launch a competing renewable fuel business, Reuters reported.
The court also determined that Phillips 66’s actions were malicious. This could make the verdict eligible for treble damages under state law.
Propel’s lawsuit claims that Phillips 66 approached the company in 2017. The discussion was about acquiring it as part of its expansion into California’s renewable fuel market. The state offers incentives for producing low-carbon alternatives. According to Propel, Phillips 66 withdrew from the acquisition in 2018. The company began selling its own renewable fuel in 2019. Propel filed suit in 2022, alleging that Phillips 66 had illegally used proprietary financial data and business strategies shared during acquisition discussions.
