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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Royal Dutch Shell PLC

Atallah vs. Equilon Enterprises (Fraud)

Date: 03/09/2010 (Date of Punitives Verdict)

Misconduct Type: Non-governmental Contract Fraud

Enforcement Agency: Non-Governmental

Contracting Party: Non-Governmental

Court Type: Civil

Amount: $51,650,000

Disposition: Judgment Against Defendant

Synopsis: Elias Atallah claimed that Royal Dutch Shell subsidiary Equilon Enterprises LLC (doing business as Shell Oil Products, U.S.) had defrauded him while he was negotiating the purchase of a gas station from the company in Riverside County, California, in 2003. Atallah claimed that Equilon had intentionally concealed from him the fact that the county would force the station impose costly environmental remediation measures to prevent groundwater contamination. In 2006, a state jury found Equilon guilty of intentional fraud and concealment and awarded Atallah $1.65 million in compensatory damages. The jury also found that Equilon had acted with “oppression, malice or fraud” and was therefore liable for punitive damages. In March 2010, a jury awarded $50 million in punitive damages.