Californians Poised to Recoup Losses from Gas Price Manipulation

Californians who purchased gas in Southern California in 2015 may be eligible for a share of a $50 million settlement with gas trading firms. The settlement resolves a lawsuit filed by the California Department of Justice, alleging that Vitol and SK Energy Americas, Inc., along with its parent company SK Trading International, manipulated spot market prices for California gas, driving up prices for consumers in the aftermath of a refinery explosion in Torrance.

Uncovering the Truth Behind California's Gas Price Spike

Alleged Price Manipulation Leads to Landmark Settlement

The lawsuit filed by the California Department of Justice claimed that the gas trading firms worked together to "manipulate spot market prices" for California gas, ultimately driving up prices for consumers. This alleged manipulation occurred following a disrupted market due to an explosion at a gasoline refinery in Torrance in 2015. The gas trading firms did not admit to breaking any laws in the settlement, but the $50 million payout suggests that the state's allegations had merit.The settlement represents a significant victory for California consumers, who were impacted by the higher gas prices during that period. By holding the gas trading firms accountable, the state has sent a strong message that such anti-competitive practices will not be tolerated. This settlement serves as a reminder that regulatory authorities are vigilant in protecting the interests of consumers and ensuring a fair and transparent marketplace.

Eligibility and Claim Submission Process

To be eligible for a share of the settlement, Californians must have purchased gas between February 20, 2015, and November 10, 2015, in the following Southern California counties: Los Angeles, San Diego, Orange, Riverside, San Bernardino, Kern, Ventura, Santa Barbara, San Luis Obispo, and Imperial. Eligible individuals have until January 8, 2025, to submit a claim form, which can be done online or by requesting a physical form to be mailed.The settlement pool of $37.5 million, after deductions for various expenses, will be divided equally among those who make a valid claim. Payments will be made electronically or by paper check, with the earliest potential payout expected next year, following the conclusion of the court approval process and any potential appeals.

Concurrent Settlement for Out-of-State Consumers

Concurrent with the settlement for California residents, there is also the California Gasoline Spot Market Antitrust Settlement, which is open to individuals who lived outside of California and businesses, regardless of location, who purchased gas between February 18, 2015, and May 31, 2017. These individuals and entities must also submit a claim by January 8, 2025, to be eligible for a share of this separate settlement.The dual settlements underscore the widespread impact of the alleged price manipulation, affecting both in-state and out-of-state consumers. By providing avenues for compensation, the state is ensuring that all those impacted by the inflated gas prices have the opportunity to recoup their losses.

Navigating the Claims Process and Seeking Justice

The settlement process presents a unique opportunity for Californians to seek justice and recoup some of the financial burden they faced due to the alleged price manipulation. While the gas trading firms did not admit to any wrongdoing, the substantial settlement amount suggests that the state's case had merit.By encouraging eligible individuals to submit their claims, the California Attorney General's office is taking proactive steps to ensure that the settlement funds are distributed to those who were directly impacted. The extended claim submission deadline of January 8, 2025, provides ample time for Californians to review their records and determine if they qualify for a share of the settlement.As the settlement process unfolds, it will be crucial for the state to maintain transparency and ensure that the distribution of funds is fair and equitable. This case serves as a reminder of the importance of vigilant oversight and the need to hold companies accountable for anti-competitive practices that harm consumers.