A federal judge is allowing a consumer class action lawsuit alleging gas price-fixing to proceed against three energy companies, according to media reports.
U.S. Magistrate Jacqueline Scott Corley denied a motion to dismiss in part filed by SK Trading International Co. Ltd., SK Energy Americas Inc., and Vitol Inc. in the Northern District of California.
“Plaintiffs’ Sherman Act and Unfair Competition Law (UCL) claims are dismissed with leave to amend to the extent Plaintiffs have a good faith basis for doing so consistent with this Order,” Judge Corley wrote in her March 29 decision. “Further, Plaintiffs have adequately pled equitable tolling based on the delayed discovery rule and fraudulent concealment doctrine.”
Corley further stated in the order that plaintiffs had not established standing to pursue a claim for injunctive relief and that they failed to show that their legal remedies are otherwise inadequate.
“Judge Jacqueline Scott Corley is a very experienced judge,” said Rachel Bailey, legal data expert, at Lex Machina. “Reviewing cases filed since January 1, 2010, she has seen more than 4,000 cases including 89 antitrust cases.”
Pacific Wine Distributors filed the complaint in May 2020, accusing the defendants of agreeing with each other to manipulate the spot market price for refined gasoline and gasoline blending components so they could share in windfall profits on these contracts while disguising their illegal conduct.
“The Sherman Act claims were dismissed and so we have to wait and see what a possible amended pleading looks like,” Bailey told the Southern California Record. “Judges in the Northern District of California have found that there was no restraint of trade under the Sherman Act in 18 cases at a judgment on the pleadings and five cases at summary judgment.”
As previously reported, after a Torrance, California refinery explosion, the defendants allegedly colluded to increase the rate of the ingredients used in mixing gasoline because the incident had limited the refinery’s ability, which led to disruptions and a hike in prices.
“Depending on how strong the facts are in this case, its chances at trial may be pretty even,” Bailey said. “It's getting to trial that is the hard part.”
Among the damages sought by the plaintiff and the class are three-fold damages and/or restitution as well as pre-judgment and post-judgment interest on damages awarded them, and that such interest is awarded at the highest legal rate, according to the lawsuit.
“Most cases settle,” Bailey said. “That could be successful depending on the settlement numbers. Antitrust cases in the Northern District of California filed in 2010 or later had $1.7 billion in approved class action settlement damages.”