Propel Fuels Concludes Trial Court Proceedings with Order Affirming $833 Million Win Over Phillips 66 in Landmark Trade Secret Case

Kobre & Kim led litigation leading to one of the largest trade secret verdicts in US history

SACRAMENTO, Calif., Nov. 10, 2025 /PRNewswire/ -- In a sweeping 52-page order, Judge Michael Markman of the Superior Court of California, County of Alameda, rejected efforts by defendant Phillips 66 Company ("Phillips 66") to knock out the landmark $833 million trade secret misappropriation judgment won by renewable fuels pioneer Propel Fuels, Inc. ("Propel").

The case arose from a proposed acquisition of Propel by Phillips 66. After terminating the deal in 2018, Phillips 66 immediately launched a competing renewable fuels retail business using trade secrets acquired from Propel under NDA during due diligence and quickly grew the business into a multibillion-dollar operation. Per the court's order, "Phillips 66 had decided not to go forward with the acquisition for weeks before it told anyone at Propel that a deal would never close, continuing to use Propel's team to create reports and data that would then later be used by Phillips when it decided to 'go it alone.'"

The case was tried to a jury in 2024, which awarded $604.9 million in compensatory damages, followed by an additional $195 million in exemplary damages added in July 2025 by the court. In issuing the latter award, Judge Markman found that, "Phillips 66's misconduct was 'reprehensible' from a business perspective," citing "troubling aspects of Phillips' handling of the due diligence process," "mismanagement of the transition from a potential acquisition" to the launch of its new business, and in particular, the "duplicitous handling of the wind-down" of the acquisition. Phillips 66 nevertheless brought three post-trial motions attacking both aspects of the judgment. Judge Markman rejected all three in an order issued on October 20, 2025, reaffirming his prior condemnation of Phillips 66's actions.

Among other evidence cited was the testimony of the Phillips 66 executive who ran the due diligence but was then tasked with building the company's competing business after it terminated the deal. Noting the witness' admission that a key spreadsheet compiling Propel's confidential information was "presented for the P66 leadership to decide whether or not to fund the go-it-alone option," Judge Markman said, "For a case like this one, the testimony was unusually dramatic – and direct." 

The order brings to a conclusion the trial court proceedings on the trade secret claim itself, though Propel has filed a motion seeking additional compensation for its attorneys' fees and legal costs which will be considered separately. Phillips 66 has indicated that it intends to appeal. During the pendency of any appeal, additional interest liability will accrue at an annual rate of 10 percent pursuant to California statute—that is, an additional $83.3 million every year, or $228,272 per day. As of the date of this press release, interest of more than $22 million has already accrued on the August 5, 2025 judgment.

A copy of the court's order can be accessed here: [LINK]

SOURCE Kobre & Kim