Phillips 66 Shares Plummet 3.2% After $800M Trade Secrets Ruling Volume Ranks 494th

Phillips 66 (PSX) fell 3.22% on August 1, 2025, with a trading volume of $0.25 billion, marking a 47.78% decline from the previous day and ranking 494th in market activity. The stock faced pressure following a California state court ruling that ordered the company to pay $800 million in damages to biofuel firm Propel Fuels. The judgment included $604.9 million in compensatory damages and $195 million in punitive damages, stemming from allegations that Phillips 66 stole trade secrets to enhance its renewable fuel operations. The court cited the company’s “reprehensible” conduct, noting it leveraged its bargaining power during discussions with Propel in 2017 before abruptly ending negotiations in 2018 and launching its own renewable fuel line in 2019. Phillips 66 has stated it is evaluating legal options but has not commented on the potential financial impact.

The legal setback highlights risks in the renewable energy sector, where intellectual property disputes could disrupt strategic growth plans. While the company reported strong refining margins in its recent earnings, the penalty may strain short-term liquidity. The case also underscores broader challenges in balancing innovation with legal compliance, particularly in competitive markets where trade secrets are closely guarded assets.

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