May 9 (Reuters) - Plaintiffs in an antitrust class
action over oil prices have asked a federal judge in Nevada to
force Pioneer Natural Resources to hand over communications
involving its embattled former CEO Scott Sheffield that it gave
to the U.S. Federal Trade Commission.
The FTC last week approved Exxon Mobil's ( XOM ) $64 billion
purchase of Dallas-based Pioneer, but the agency barred
Sheffield from Exxon's board over allegations that he tried to
collude with OPEC to reduce output of oil and gas in order to
boost his company's profits.
Pioneer is among the defendants in the Nevada case, in which
consumers claim it and other energy companies conspired to curb
output of shale oil, raising prices for retail gasoline and
diesel fuel, marine fuel and residential heating oil.
Pioneer and Sheffield declined to comment on Thursday about
the consumers' demand in the Nevada litigation. The FTC, which
is not a party in the lawsuits, declined to comment. Exxon is
not a defendant in the cases.
The FTC said in its order against Sheffield that "through
public statements, text messages, in-person meetings, WhatsApp
conversations and other communications while at Pioneer,
Sheffield sought to align oil production" in West Texas and New
Mexico with OPEC.
"These documents and materials produced to the FTC are
indisputably relevant and discoverable in this action as they
track the core conspiratorial allegations by the plaintiffs,"
attorneys for the consumers told Chief U.S. District Judge
Miranda Du in Las Vegas.
Pioneer has opposed the request, according to the
plaintiffs. Pioneer is expected to submit a separate filing to
the court.
Pioneer in a statement about Sheffield last week said it was
"neither the intent nor an effect of his communications to
circumvent the laws and principles protecting market
competition."
The FTC's complaint against Sheffield "reflects a
fundamental misunderstanding of the U.S. and global oil markets
and misreads the nature and intent of Mr. Sheffield's actions,"
Pioneer said.
The case is Rosenbaum v. Permian Resources ( PR ), U.S. District
Court, District of Nevada, No. 2:24-cv-00103-MMD-MDC.
For Daniel Rosenbaum: Patrick Coughlin of Scott+Scott
For Pioneer Natural Resources: Samuel Liversidge of Gibson,
Dunn & Crutcher; and Boris Bershteyn of Skadden, Arps, Slate,
Meagher & Flom
Read more:
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