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In a more than 100-page ruling, Judge Jinsook Ohta said there is not enough evidence of collusion to allow the case to proceed to trial

As gas prices hit another record, judge dismisses class-action lawsuit accusing oil companies of colluding - The San Diego Union-Tribune News Local Sports Business Opinion Weather Entertainment Lifestyle Real Estate News Obituaries See Obituaries Online Place Obituary/Death Notice See Obituaries Online Place Obituary/Death Notice Games, Puzzles, and Crossword Crossword Sudoku Crossword Sudoku ________________ About Us Contact us Our Journalism Explained Newsletters Readers Rep Careers Events Historical Archives Podcasts and Livestreams U-T Store Contact us Our Journalism Explained Newsletters Readers Rep Careers Events Historical Archives Podcasts and Livestreams U-T Store Subscriptions Manage Subscription EZPay Delivery Issue eNewspaper Subscribe Subscriber Terms Gift Subscription Terms Manage Subscription EZPay Delivery Issue eNewspaper Subscribe Subscriber Terms Gift Subscription Terms Newsletters and Alerts Community papers Del Mar Times Encinitas Advocate La Jolla Light PB Monthly Point Loma-OB Monthly Pomerado News Poway News Chieftain Ramona Sentinel Rancho Bernardo Rancho Santa Fe Review Del Mar Times Encinitas Advocate La Jolla Light PB Monthly Point Loma-OB Monthly Pomerado News Poway News Chieftain Ramona Sentinel Rancho Bernardo Rancho Santa Fe Review U-T En Español Deportes Comunidad Entretenimiento Fotos y videos Noticias Periódico Electrónico Deportes Comunidad Entretenimiento Fotos y videos Noticias Periódico Electrónico eNewspaper U-T En Español: Periódico Electrónico ________________ U-T Events U-T Store Advertising Place an ad Media kit Rate book Report an ad problem Automotive Classifieds Eldercare Directory Jobs Vegas Guide Newspaper ad directory Newspaper special sections Real Estate Sponsored Stats Digital Place an ad Media kit Rate book Report an ad problem Automotive Classifieds Eldercare Directory Jobs Vegas Guide Newspaper ad directory Newspaper special sections Real Estate Sponsored Stats Digital Hot Property San Diego Drives The Hub Local jobs Privacy and Terms Privacy Terms Advertising terms Privacy Terms Advertising terms Copyright © 2023, The San Diego Union-Tribune | CA Notice of Collection | Do Not Sell My Personal Information Sections Sports Business Weather Entertainment Opinion Real Estate Obituaries eNewspaper Newsletters Subscribe or Log InProfileSign Out Show SearchSearch Query Submit Search AdvertisementAdvertisement Aztecs Gift Guide Holiday things to do Food & Cooking Crossword Sign up for news alerts Watchdog As gas prices hit another record, judge dismisses class-action lawsuit accusing oil companies of colluding (Christina House / For The Times/CNG) By Jeff McDonald Oct. 5, 2022 5 AM PT FacebookTwitterShow more sharing optionsShareClose extra sharing options Facebook Twitter LinkedIn Email Copy Link URLCopied!Print The news keeps getting worse for California drivers.In a week when the price of a gallon of gas rose for the 18th consecutive day, notching an all-time record, a federal judge in San Diego has dismissed a class-action lawsuit that accused major oil companies of colluding to keep fuel costs artificially high.The decision was published by U.S. District Court Judge Jinsook Ohta late last week, seven months after lawyers representing the owners of a North County gas station squared off in her courtroom against some of the largest oil conglomerates in the world.AdvertisementIn short, the judge ruled the plaintiffs could not establish that communications between traders from rival companies helped executives raise the cost of gasoline for California consumers.“While defendants would certainly have an economic motive to act in the manner alleged by plaintiffs, that alone cannot establish an antitrust violation,” the judge wrote in her 103-page ruling.“Antitrust wrongdoing consists of concerted action pursuant to an illegal agreement, not independent profit-maximizing actions based on market conditions,” she said.The decision, which affirmed a tentative ruling handed down ahead of the February hearing, comes as the average fuel price in San Diego has risen to a record $6.42 per gallon. As of Tuesday, the area’s average cost for a gallon of gas was up about 3 cents since Monday, 52 cents over the past week and $1.18 in the past month, according to the running AAA analysis of nationwide fuel costs. BusinessFor subscribers San Diego gas prices hit record high. You’re paying $2 more than a year ago Gov. Newsom wants Legislature to impose a windfall profits tax on oil companies.Oct. 3, 2022 In February, when dozens of attorneys crowded into Judge Ohta’s courtroom to argue their respective positions on allegations of price-fixing, the average cost of a gallon of gas in San Diego was $4.75.Attorneys representing Persian Gulf Inc., the filling station in Escondido that is serving as lead plaintiff in the class-action litigation, did not immediately respond to a request for comment on the judge’s ruling.However, the plaintiffs’ counsel has waged the legal battle since 2015, so a request for review by the U.S. 9th Circuit Court of Appeals would not be a surprise.The defendants, entities that are owned by some of the richest energy corporations on the planet, include BP, Chevron, Shell Oil, ExxonMobil, Phillips 66, Alon USA and Tesoro.In court filings, the plaintiffs’ firm Robbins Geller Rudman & Dowd argued that the oil companies coordinated their respective refinery operating and maintenance schedules, which affected how much gas was produced and ultimately cost consumers more than $20 billion in recent years alone.“They worked together to discourage imports, increase exports, keep their refineries running under capacity and manipulate prices through their trading activity,” they wrote in a court filing last year.“Defendants have reaped billions of dollars in profits from their scheme, and the massive price spike seen after the Torrance explosion has never returned to normal,” they added.Several of the defendants reached this week declined to comment on the ruling; others did not respond to requests for interviews. An ExxonMobil official issued a brief statement Tuesday.“We agree with the decision of the court,” spokesperson Todd Spitler said by email.In a litany of court filings dating back years and during the February hearing on the motion for summary judgment, oil company attorneys denied each of the allegations put forward by Persian Gulf Inc. and its lawyers. BusinessFor subscribers Escondido gas retailer files class-action lawsuit accusing oil companies of conspiring to keep prices high After hearing Wednesday, federal judge takes the matter under advisement. Feb. 23, 2022 “After years of costly discovery, plaintiffs have zero evidence of this claimed agreement” between oil companies, they argued in briefs filed in advance of the hearing last spring.“Their attempts to infer a conspiracy … fall short of satisfying the governing legal standard,” the defense team said. “The conduct they identify is entirely consistent with non-conspiratorial, independent decision-making by individual defendants.”The lawsuit alleged that, among other practices, the oil companies signed “exchange agreements” between themselves that allowed the firms to move gas back and forth in ways that kept prices higher than they might be otherwise.Oil companies rejected the assertion that the agreements were designed to take advantage of pricing when refineries were down for maintenance or otherwise out of service.They said compacts were convenient and cost-saving for the companies, and allowed the companies to expand their geographic reach to promote competition.The judge agreed with the oil companies.“While these types of agreements can be misused as part of an unlawful conspiracy, without more (evidence) this court cannot conclude that exchange agreements, in and of themselves, raise a reasonable inference of conspiracy,” she wrote. Politics On the North County coast, voters fume about gas prices but fear for climate’s future Gas prices worry voters in the 49th Congressional District, which stretches along the coast straddling San Diego and Orange counties. It’s part of a debate over climate change and energy policy.Oct. 4, 2022 Over the course of the litigation, plaintiffs compiled evidence that they said showed traders exchanging information with rival companies — actions they say undermine price competitiveness.In one example from 2012, a BP trader allegedly disclosed confidential information in asking a counterpart from Shell if there was surplus gas available.The BP refinery unit was running “at min rates until early May in order to build … inventory back to safety stock level,” the trader conveyed, according to the judge’s ruling.Plaintiffs argued that it was improper to alert a business rival to an operating practice with specific dates because they could use the information to increase profits by limiting gas supplies.But the judge rejected that claim.“The court is satisfied that defendants produced plausible and justified business reasons for traders to share information with one another,” she ruled. “Defendants provide evidence that traders needed to buy and sell gas from each other to meet their refineries’ time-sensitive supply needs.”For years, California gas prices have remained stubbornly higher than the national average. The $6.41 average cost in California posted Tuesday by AAA was nearly 70 percent higher than the $3.81 national average.Analysts have historically blamed California’s clean-air standards for the high cost of fuel, but state elected officials and consumers are growing increasingly frustrated with the status quo.Last week, for example, Gov. Gavin Newsom accused oil companies of “extortion” and announced that he would direct the Air Resources Board to expedite the transition from the summer blend of fuel to the less expensive winter blend.State Senate President Toni Atkins, D-San Diego, issued a statement with Assembly Speaker Anthony Rendon, D-Lakewood, pledging to explore a windfall profit tax when the legislature convenes early next year.Many of the defendants in the class-action lawsuit have reported record quarterly profits in recent months.ExxonMobil told shareholders in July that it recorded $17.9 billion in earnings during the second quarter of 2022, nearly four times the $4.7 billion the company reported over the same quarter last year and more than triple the $5.5 billion reported for the first three months of this year.Chevron reported second-quarter profits of $11.6 billion, almost quadruple the $3.1 billion it earned in the same period in 2021. WatchdogLatestEnergyBusinessCourtsTop Stories Newsletter Get our essential investigative journalism Sign up for the weekly Watchdog newsletter for investigations, data journalism and more. Enter email address Sign Me Up You may occasionally receive promotional content from the San Diego Union-Tribune. Jeff McDonald Follow Us Twitter Email Facebook Show Comments Support our journalism Submit a story tip Report a problem with this story More from this Author Watchdog State’s top insurance regulator faces new accusation of favoring insurers over ratepayers Dec. 28, 2022 Watchdog Fired former San Diego prosecutor Marlea Dell’Anno nets almost $6 million from city for damages, attorney fees Dec. 27, 2022 WatchdogFor subscribers ‘Failing to produce’: San Diego is paying hundreds of thousands of dollars to settle public-records lawsuits — with more coming Dec. 26, 2022 Watchdog Does an interruption violate free speech? 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