CONSUMERS CHARGE MAJOR AMERICAN OIL COMPANIES FIXED PRICES ON OIL AND GASOLINE SINCE MARCH AND APRIL OF 2020, IN VIOLATION OF THE ANTITRUST LAWS OF THE UNITED STATES. PLAINTIFFS' LAWSUIT WAS FILED BY ALIOTO LAW FIRM OF SAN FRANCISCO ON MONDAY, MARCH 28, 2022.
SAN FRANCISCO, March 31, 2022 /PRNewswire/ -- 24 American consumers filed an antitrust case [4:22-cv-01979-JSW, D'Augusta v. American Petroleum Institute, et al.] against the largest oil companies in the country charging that in March and April of 2020 the defendant oil companies conspired among themselves and with Saudi Arabia and Russia to cut production of oil to raise the price of oil and gasoline. Plaintiffs are represented by Alioto Law Firm, Law Offices of Lawrence G. Papale, Bonsignore Trial Lawyers, Law Office of Theresa Moore PC, The Veen Firm and Nedeau Law PC.
Agreements among competitors to fix prices and cut production is illegal under the Antitrust laws of the United States.
According to the complaint, a fierce price war broke out between Saudi Arabia and Russia in the first week of March 2020 over their oil production agreement that Russia claimed was forcing it to lose market share to new American shale oil producers. Russia increased its oil production. In retaliation against Russia, Saudi Arabia slashed oil prices and began producing more oil than it had ever done before. As a result, the prices of oil and gasoline plummeted in March 2020.
Former President Donald Trump hailed the price war, observing that "…now, gasoline is going to be 99 cents a gallon and less" and noted "…that's like giving a massive tax cut to the people of our country." The former President praised the low prices, commenting "The free market is a wonderful thing. It's amazing how it can work."
However, as alleged, the American oil companies sought to stop the Saudi Arabia and Russia price war. They believed that former President Trump could get an agreement from both Saudi Arabia and Russia to stop the price war. The oil company executives set up an emergency meeting with the former President. A meeting was held in the Cabinet Room of the White House on April 3, 2020. After the meeting with the major oil companies on April 2nd and 3rd, former President Donald Trump reversed his position and called Mohammed bin Salman Al Saud (Crown Prince) of Saudi Arabia and President Vladimir Putin of Russia to call off their price war so that oil prices could be raised.
As a result of the calls by former President Trump, the Crown Prince of Saudia Arabia and President Vladimir Putin agreed to end their price war. However, they required the American oil companies to agree to cut their oil production as well. The American oil companies agreed. Saudi Arabia and Russia announced a reduction of 10 million barrels a day; and the former United States Secretary of Energy announced at the G2 meeting on April 10, 2020 that the American oil companies would cut 2-3 million barrels a day.
The deal was done by Easter Sunday, April 12, 2020.
The price of oil and gasoline steadily increased from April and May of 2020 at less than a dollar to $6-$7 a gallon within just two years.
The plaintiffs claim that they have been overcharged by $2-$3 per gallon. The plaintiffs seek an Order of the Court, for the good of the public as a whole, requiring the defendant oil companies to disgorge profits they received by reason of these unlawful agreements. Plaintiffs also call for the breakup of the oil companies, in particular Exxon from Mobil, Chevron from Texaco and Phillips from Conoco.
Media Contact:
Linda Blum
[email protected]
SOURCE Alioto Law Firm
Share this article