A Suffolk Superior Court judge has given preliminary approval to a settlement involving a class action lawsuit against Worcester-based Peterson Oil regarding its use of biodiesel fuel mix.
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A Suffolk Superior Court judge has given preliminary approval to a settlement involving a class action lawsuit against Worcester-based Peterson Oil regarding its use of biodiesel fuel mix.
If approved, the settlement will see customers of Peterson Oil, as well as its subsidiaries Cape Discount Fuel and Cleghorn Oil, be eligible to collect from the $14 million settlement fund established by the proposed deal. Final approval will be considered at a hearing in January.
The settlement is in regards to Peterson Oil’s alleged use of heating oil containing biofuel, with plaintiffs alleging the firm delivered oil with biofuel mixture levels which were too high, leading to damage to equipment and customers paying more for the fuel than it was actually worth.
A statement on Peterson Oil’s website defended its use of biofuel and said the settlement was not an admission of wrongdoing.
“Our decision to incorporate biofuel has been supported by rigorous testing and real-world experience,” the statement reads in part. “We have proudly served thousands of homes, going beyond what was traditionally offered, to provide a product we truly believed in—and still do. In fact, we use the same fuel in our homes, trusting in its quality and environmental benefits. All of this caused the company, and our insurance carriers to defend the lawsuit. After many years of defending, our insurance carriers decided to settle. Clearly, this is not an admission of wrongdoing but rather a strategic move to avoid even more prolonged litigation.”
The reaching of the latest settlement was first reported by the Worcester Telegram & Gazette.
Peterson Oil has been dealing with fallout from allegations involving their use of biofuel mixtures for years. In 2021, the company agreed to pay a $450,000 fine to the state, after the attorney general’s office alleged Peterson Oil knowingly submitted false documents over the course of its contracts claiming to deliver compliant oil when it had not.
The company also faced a separate class action lawsuit filed in Worcester Superior Court in 2019 regarding the impact of its heating oil mixtures, with that lawsuit saying improper blends could cause furnace parts to corrode gel fuel lines, and cause heating systems to break down.
That class action lawsuit led to a settlement of $5.6 million, according to PetersonOilClassActionLawsuit.com, the website set up to handle claims filed as part of the more-recently settled Suffolk court case.
If given final approval, the latest settlement would impact Peterson Oil customers from Jan. 1, 2012, until Nov. 12 2025, with claims due by Feb. 11.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the manufacturing and real estate industries.
