Gas station class action lawsuit overview:
- Who: Three consumers filed a class action lawsuit against Marathon Petroleum Company LP, BP Products North America Inc. and multiple other gas station companies.
- Why: The plaintiffs claim the gas station companies conspired to use an artificial intelligence-based algorithm to inflate the price of fuel in California.
- Where: The class action lawsuit was filed in California federal court.
AA new class action lawsuit accuses gas station companies, including Marathon Petroleum, 7-Eleven and BP Products, of conspiring to use an artificial intelligence-based algorithm to inflate the price of fuel in California.
Plaintiff Joel Casciani and two other consumers claim the gas station companies colluded to use Kalibrate’s AI-based pricing software to fix fuel prices, leading to inflated prices at the pump.
The plaintiffs argue the algorithmic pricing system, Kalibrate Fuel Pricing, enabled gas stations to coordinate price hikes, eliminating traditional competition and driving up costs for consumers.
“This artificial surcharge inflicts a severe, daily financial toll on millions of Californians who rely on their vehicles for basic necessities,” the gas station class action lawsuit says.
The plaintiffs want to represent a class of all persons and entities who purchased gasoline at any of the defendants’ gas stations in California where Kalibrate Fuel Pricing was in use from and including June 22, 2022, to the present.
Kalibrate allegedly used competitor pricing data to coordinate fuel prices
The class action lawsuit claims Kalibrate’s software connects directly to gas stations’ pumps and signs and uses data from competing stations to set prices.
Instead of lowering prices to attract drivers, however, the software coordinates high prices, promising gas station operators increased profits for surrendering their pricing decisions to the algorithm, the complaint alleges.
“For everyday commuters, the inflated cost of fuel means struggling to afford the gas needed to travel to work, care for loved ones or visit family,” the gas station class action lawsuit says.
The full list of companies named in the class action lawsuit include Marathon, BP Products North America and its subsidiary TravelCenters, 7-Eleven and its subsidiary Speedway, Quik Stop owner EG America, Walmart and its subsidiary Sam’s Club, Circle K and its TMC franchise, Albertsons and a number of “Doe” gas station chains.
The plaintiffs claim the gas station companies’ alleged actions constitute an unlawful trust, violating California’s antitrust law, the Cartwright Act, and violate the state’s Unfair Competition Law.
The plaintiffs demand a jury trial and request injunctive relief and an award of compensatory and treble damages for themselves and all class members.
In another case involving a gas station, Circle K recently agreed to settle a class action lawsuit revolving around a 2024 data breach.
Have you purchased gasoline at a gas station in California where Kalibrate Fuel Pricing was in use? Let us know in the comments.
The plaintiffs are represented by Constantine P. Economides of Dynamis LLP and Nicolas Stebinger of Simonsen Sussman LLP.
The gas station class action lawsuit is Casciani, et al. v. Knowledge Support Systems Inc., et al., Case No. 2:26-at-01044, in the U.S. District Court for the Eastern District of California.
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