Exxon Settles with Service Station Dealers (February 2, 2006)
February 2, 2006
Exxon Settles with Service Station Dealers (February 2, 2006)
U.S. District Court Judge Alan Gold tentatively approved a $1.075 billion agreement between Exxon Mobil Corp. and thousands of service station dealers that sued the company for allegedly failing to provide promised discounts for wholesale motor fuel and fraudulently hiding its failure to pay.
The service station dealers commenced the suit in 1991, and a jury found in favor of the dealers in 2001 and ordered Exxon to pay $500 million. Exxon appealed the verdict and the U.S. Supreme Court denied Exxon’s appeal last June, by which time the payment had increased to more than $1 billion with interest. The two sides reached the settlement of $1.075 billion in December. The final approval of the settlement will be issued by Judge Gold in April.