BP Agrees to Pay $7M in Tainted Gas Class Action Settlement

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BP Agrees to Pay $7M in Tainted Gas Class Action Settlement

By Anne Bucher

UPDATE: Details on how to file a claim for the BP Tainted Gas Class Action Lawsuit Settlement are up!

BP has agreed to pay $7 million to settle a putative class action lawsuit filed after the oil company recalled 4.7 million gallons of tainted gasoline in four states. Later this month, a federal judge in Chicago will hold a hearing to give preliminary approval to the settlement and to grant class action status.

In August 2012, thousands of consumers purchased incorrectly formulated BP gasoline in Indiana, Illinois, Ohio and Wisconsin. As a result, some vehicles experienced stalling, hard starting, rough idling and mechanical-component damage. Class action lawsuits have been filed on behalf of the thousands of consumers who purchased the tainted gasoline. Typical repair costs for draining the fuel tank and cleaning the system run between $300 and $1,200. Some of the gasoline was sold at stations that are not of the BP brand.

On July 1, BP agreed to compensate consumers up to $5 million as part of a class action settlement over the tainted gas. It also agreed not to oppose a request for up to $2 million in attorneys’ fees.

“The decision to settle this litigation is a reflection of BP’s commitment to provide consistent, dependable, high-quality gasoline to its consumers, as demonstrated by its fuels guarantee, and to avoid protracted litigation,” BP wrote in a statement about the class action settlement.

BP has resolved at least 16,800 consumer claims involving the tainted gasoline that had been processed at the company’s Whiting refinery. As part of its settlement agreement, BP agrees to publish notices explaining the terms of the tainted gas class action settlement, including which consumers are entitled to compensation and how they can submit a claim. The company intends to create a settlement website that will provide information to consumers affected by the tainted gas.

According to the class action lawsuit, the tainted gasoline was distributed to more than 575 retail outlets in four states. BP had identified a “process upset” as the source of the tainted gasoline, which caused “higher than normal levels of a hydrocarbon polymer” to pass through a refinery unit in the company’s Whiting refinery. These high levels of polymers are difficult for automobile engines to burn. The polymeric residue leaves deposits on fuel injectors and spark plugs, causing hard starting, rough idling, stalling and other issues.

The class action lawsuit was filed on behalf of four affected drivers in an Indiana federal court. The settlement will cover the costs of vehicle repairs, lost wages and transportation costs incurred while the affected vehicles were being repaired.

This class action lawsuit is not the first to target BP in recent years. In December 2012, a federal judge approved a $7.8 million settlement in the BP oil spill class action lawsuit. In that case, more than 100,000 businesses and individuals were eligible to share the settlement.

Attorneys for the plaintiffs include Irwin B. Levin of Cohen & Malad and Will Riley of Price Waicukauski & Riley LLC.

Details on how to file a claim for the BP tainted gas class action settlement can be found here in our Open Class Action Lawsuits section.

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions