Propel Fuels Inc. vs. Phillips 66 Company

Case Background

On February 17, 2022, Plaintiff Propel Fuels Inc. filed a Trade Secret theft lawsuit in the California State, Superior Court of Alameda County (Case number: 22CV007197). Judge Michael Markman presided over the case.

Cause

Propel Fuels Inc., founded in 2004, developed a successful and innovative approach to selling renewable fuels (E85 and renewable diesel) in California. The company created proprietary methods for customer targeting, site selection, pricing, and operations based on extensive data collection and analysis. Their unique P: LOCAL algorithm, a valuable trade secret, helped identify optimal locations for renewable fuel sales. In 2017, Phillips 66 approached Propel about a potential acquisition. After signing an NDA on September 25, 2017, Propel shared over 1,000 confidential documents during due diligence, including trade secrets. Phillips 66 obtained detailed information about Propel's business strategies, financial data, and trade secrets. Despite promising not to enter the California renewables market independently, Phillips 66 abruptly terminated the acquisition on August 24, 2018, and immediately began implementing Propel's trade secret-based business model.

Injuries

Propel suffered direct competitive harm when Phillips 66 misappropriated its trade secrets and launched a competing renewable fuels business. Phillips 66 pressured Propel to end existing supply relationships, cau