In California, Bloomberg reports that a jury found Phillips 66 liable for a judgment of $604.9 million in a trial over allegations that Philips 66 stole confidential data, proprietary strategies and business intelligence developed by Propel over 13 years at a cost to Propel of more than $200 million.
According to court filings, Propel and Phillips 66 entered into due diligence in 2017 in connection with a proposed acquisition of Propel by Phillips 66; Propel said that “Phillips 66 extended the due diligence process over eleven months, during which Propel, under a non-disclosure agreement, disclosed its proprietary strategies and data, and was actively building a new integrated renewable fuels business for Phillips 66, when Phillips 66 abruptly and without explanation terminated the deal on August 24, 2018.”
The next business day, according to the suit, Phillips66 announced to California regulators that it would enter the E85 market in the state and launched retail sales of high-blend renewable diesel weeks later. Propel accused Phillips66 of expanding its California renewables business using Propel’s data and market insights; it now retails E85 or renewable diesel at more than 600 stations in the state.
Founded in 2004, Propel was a pioneer in the sale of low-carbon renewable fuels, including E85, a cleaner energy solution for use in Flex Fuel vehicles. In 2015, Propel was the first in the market to retail high-blend renewable diesel, which Propel sells under its HPR™ brand. Renewable diesel is a cleaner diesel fuel produced from lower carbon intensity feedstocks; Propel’s HPR (R99) was the first high-blend renewable diesel targeted to consumers in the California market.
