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Phillips denied Propel's trade secrets claims

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Jury decided the case in Oakland, California

By Blake Brittain

Oct 16 (Reuters) - Energy company Phillips 66

owes biofuel maker Propel Fuels $604.9 million in damages for

stealing Propel's trade secrets to build up its renewable-fuel

capabilities, a jury in a California state court decided on

Wednesday.

The jury in Oakland agreed with Propel that Houston-based

Phillips stole the company's secrets under the guise of

gathering information for a potential acquisition and then used

them to create a competing business.

A spokesperson for Propel confirmed the award. Spokespeople

for Phillips 66 did not immediately respond to a request for

comment.

Sacramento-based Propel specializes in low-emission gasoline

and diesel fuel. According to its lawsuit, Phillips approached

Propel in 2017 about buying the company and enhancing its

renewable fuel business in California, where the state

incentivizes producing and selling low-carbon fossil fuel

alternatives.

Phillips abruptly withdrew from the deal in 2018 and began

selling its own renewable fuel in 2019, according to Propel.

Propel sued Phillips in Alameda County court in 2022, accusing

Phillips of unlawfully using trade secrets including financial

data and business strategies that the smaller company had shared

during their talks.

"Phillips 66 is making a multibillion-dollar bet on the

California renewable fuel market, premised on Propel's trade

secrets," Propel said in the suit. "Prior to receiving Propel's

confidential information, Phillips 66 had not only sold no

renewable fuel, it also knew nothing about the business."

Phillips denied the allegations.