Keller Rohrback Investigates Oil Company Price Fixing
Keller Rohrback L.L.P. is investigating alleged price-fixing by Chevron USA Inc., ExxonMobil Corp. (NYSE:XOM), BP West Coast Products LLC, and other major oil refiners based on a recent claims that the companies’ collusion to control the supply of gasoline on the West Coast cost California gasoline buyers at least $1.3 billion.
The possibility of collusion surfaced in 2012 when Senators from Washington, Oregon, and California urged the Department of Justice to investigate refineries after gas prices spiked to $4 and $5 a gallon while the rest of the nation’s prices remained moderate. California Senator Dianne Feinstein (D-Calif.) also sent a letter to the Federal Trade Commission asking for an immediate investigation to protect California’s consumers.
There have also been allegations of oil companies scheduling unnecessary maintenance on sites in an attempt to disrupt supply. In 2015, the CEO of Tesoro reportedly admitted refinery shutdowns and “disruptions” led to big profits on the oil company’s bottom line in the first quarter.
In 2012, McCullough Research found that sudden price shifts have created a “windfall” for West Coast refineries. This year, the group Consumer Watchdog released a report that found, among other things, that gasoline consumption has dropped by 8 percent since 2005, but the price of gas in 2014 averaged 51% higher than in 2005. The West Coast oil refiners include:
• Chevron USA Inc.
• ExxonMobil Corp. (NYSE:XOM)
• BP West Coast Products LLC
• Tesoro Refining & Marketing Co.
• Shell Oil Products US
• Valero Energy Corp. (NYSE:VLO)
• ConocoPhillips (NYSE:COP)
• Alon USA Energy Inc. (NYSE:ALJ)
• Kern Oil & Refining Co.
Keller Rohrback, with offices in Seattle, Phoenix, New York, and Santa Barbara, serves as lead and co-lead counsel in class actions throughout the country. The firm’s Complex Litigation Group is proud to offer its expertise to clients nationwide, and our trial lawyers have obtained judgments and settlements on behalf of clients in excess of seven billion dollars.
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