In a high-stakes legal battle, Kobre & Kim’s strategic approach led to a significant victory for Propel Fuels against Phillips 66, culminating in a jury awarding $604.9 million in compensatory damages for trade secret misappropriation. The jury also found Phillips 66’s actions to be willful and malicious, opening the door for potential exemplary damages, which the court later set at $195 million, bringing the total award to over $800 million. ([reuters.com](https://www.reuters.com/sustainability/boards-policy-regulation/phillips-66-hit-with-800-million-penalty-biofuel-trade-secrets-case-2025-07-31/?utm_source=openai))
The dispute originated in 2017 when Phillips 66 expressed interest in acquiring Propel Fuels, a Sacramento-based retailer specializing in low-carbon fuels. During due diligence, Propel shared confidential information, including proprietary business strategies and data. However, Phillips 66 withdrew from the acquisition in 2018 and subsequently launched its own renewable fuels business, allegedly utilizing Propel’s trade secrets. ([kobrekim.com](https://kobrekim.com/news/firm-news/sacramento-based-propel-fuels-sues-phillips-66-over-alleged-trade-secrets-heist?utm_source=openai))
Propel filed a lawsuit in 2022, accusing Phillips 66 of misappropriating trade secrets and engaging in unfair business practices. The case proceeded to trial in October 2024, where Kobre & Kim’s legal team, led by Michael Ng and Daniel Zaheer, presented a compelling narrative. They began by calling three key witnesses from Propel, a move that set the tone for the trial and underscored the personal and corporate impact of the alleged misappropriation. ([prnewswire.com](https://www.prnewswire.com/news-releases/propel-fuels-is-awarded-195-million-additional-exemplary-damages-for-trade-secret-misappropriation-by-phillips-66-bringing-total-award-to-more-than-833-million-302519328.html?utm_source=openai))
The jury’s verdict in favor of Propel was a testament to the effectiveness of this strategy. The court’s subsequent award of exemplary damages further emphasized the severity of Phillips 66’s conduct. Judge Michael Markman of the Superior Court of California, County of Alameda, described Phillips 66’s actions as “reprehensible” and highlighted the company’s abuse of its bargaining power during due diligence. ([prnewswire.com](https://www.prnewswire.com/news-releases/propel-fuels-is-awarded-195-million-additional-exemplary-damages-for-trade-secret-misappropriation-by-phillips-66-bringing-total-award-to-more-than-833-million-302519328.html?utm_source=openai))
This case underscores the critical importance of safeguarding trade secrets during acquisition discussions and the potential legal repercussions of misusing confidential information. It also highlights the role of strategic legal representation in navigating complex intellectual property disputes.