Peterson Oil $14M Deceptive Pricing Class Action Settlement

Individuals or entities that received heating fuel from Peterson’s Oil Service Inc. (operating as Peterson Oil, Cleghorn Oil or Cape Discount Fuel) between Jan. 1, 2012, and Nov. 12, 2025, may be eligible to claim a cash payment from a class action settlement.

Peterson’s Oil Service Inc. agreed to pay $14 million to settle a class action lawsuit alleging it blended elevated levels of biodiesel into its heating oil. The plaintiffs claimed this practice caused heating system shutdowns and long-term equipment damage and forced customers to pay more for less efficient fuel.

Who can file a claim?

Class members include those who:

• Purchased heating fuel from Peterson Oil, Cleghorn Oil or Cape Discount Fuel between Jan. 1, 2012, and Nov. 12, 2025
• Own or owned heating equipment that came in contact with, stored or used fuel Peterson Oil delivered during the same period even if they were not the direct customer (for example, landlords or property buyers)
• Are a successor in interest, assign, subrogee or any person who may claim an interest through a class member

The settlement administrator used Peterson Oil’s records to identify eligible class members. Those who received a notice are likely included.

Current owners of heating equipment that used Peterson Oil’s fuel but were not the customer may still file a claim.

How much can class members receive?

Class members may be eligible for two types of compensation:

• Payment for each incident where class members lost heat or hot water or paid for repairs due to heating equipment shutdowns between Jan. 1, 2012, and July 5, 2016, or July 5, 2019, and Jan. 29, 2026. They can claim up to $180 per incident without documentation by attesting to the dates under oath. Those who incurred more than $500 in out-of-pocket costs for a single incident can submit documentation for the full amount. The total amount available for these claims is at least $1,426,836.67. If total claims exceed this amount, the settlement administrator will reduce payments proportionally.
• Pro rata payment based on the total gallons of Peterson Oil fuel they received during the class period, compensating for alleged overpayment and equipment damage. The total amount available for these claims is $6,806,496.66. Each class member’s share is calculated as follows: Pro rata share = (total gallons delivered during the class period) / (total gallons delivered to all class members) × pro rata fund.

Class members who previously received a payment from a partial settlement covering July 5, 2016, to July 5, 2019, will have their new payment reduced by that amount (except for heat loss incident payments).

How to claim a class action payout

Class members can file a customer claim form or current owner claim form online or request a form by calling 1-844-625-7313. They may also download, print and complete a customer claim form or current owner claim form to mail to the settlement administrator. The claim deadline is Feb. 11, 2026.

Settlement administrator's mailing address: Peterson Oil Class Action Settlement, c/o Optime Administration LLC, PO Box 3206, Brockton, MA 02304

What information is necessary to submit a claim?

• For heat loss claims up to $180 per incident: Attestation under oath of dates of incidents
• For heat loss claims more than $500 per incident: Supporting documentation for out-of-pocket costs

Payout options

The settlement administrator will mail checks to the address class members provide on their claim form.

$14 million settlement fund breakdown

The $14,000,000 settlement fund includes:

• Settlement administration fees: Up to $365,000
• Attorneys' fees: $4,666,666.67
• Attorneys' expenses: Up to $550,000
• Service awards to class representatives: $15,000 each for nine representatives ($135,000 total)
• Dispute fund: Up to $50,000
• Payments to class members: Estimated $8,233,333.33

Important dates

• Fairness hearing: Jan. 29, 2026
• Deadline to file a claim: Feb. 11, 2026

When is the Peterson Oil class action settlement payout date?

The settlement administrator will mail payments to valid claimants approximately 24 days after it processes all claims and the court grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Peterson Oil blended higher-than-standard levels of biodiesel into heating oil, which caused heating systems to shut down, led to long-term equipment damage and forced customers to pay more for less efficient fuel.

The company denied all allegations but agreed to settle to avoid the cost, risk and delay of further litigation.

Sources

1. Customer claim form
2. Current owner claim form
3. Current owner notice
4. Settlement agreement