In a significant legal development, Phillips 66 Company, a subsidiary of Phillips 66 (PSX), has been found liable in a lawsuit brought by Propel Fuels Inc. The jury in the Superior Court of the State of California, Alameda County, awarded Propel Fuels $604.9 million in compensatory damages, finding that Phillips 66 misappropriated trade secrets related to its renewable fuels business. This verdict comes as the company has recently announced plans to cease operations at its Los Angeles-area refinery in the fourth quarter of 2025.
Phillips 66 maintains its innocence and plans to vigorously defend its position against the verdict, exploring all legal options available. The company also emphasizes its commitment to supporting the approximately 600 employees and 300 contractors who work at the Los Angeles refinery during the transition period.
Despite this legal setback, Phillips 66 stock (PSX) has performed well in the past year, gaining over 16%. Investors can gain exposure to the stock through ETFs such as the VanEck Oil Refiners ETF (CRAK) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO).
The closure of the Los Angeles refinery marks a significant strategic shift for Phillips 66, as the company seeks to adapt to evolving energy market dynamics. It remains to be seen how this decision will impact the company’s overall performance and its future growth plans. The case is still pending, with post-trial motions yet to be decided, making the ultimate financial outcome uncertain. This news will likely be closely scrutinized by investors and analysts alike, who will be watching for further developments in the ongoing legal battle and the impact on Phillips 66’s future prospects.