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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 »

Exxon Mobil

Exxon Dealers Class Action

Date: 12/19/2005 (Date of Settlement)

Misconduct Type: Cost/Labor Mischarge

Enforcement Agency: Non-Governmental

Contracting Party: Non-Governmental

Court Type: Civil

Amount: $1,075,000,000

Disposition: Settlement

Synopsis: In 1991, a group of current and former Exxon direct served dealers filed a lawsuit against Exxon, alleging Exxon had been overcharging dealers for the wholesale price of motor fuel since March 1983. The lawsuit was filed on behalf of all dealers who were parties to one or more Sales Agreements with Exxon and who purchased motor fuel directly from Exxon between March 1983 and August 1994. The claim relates to Exxon's Discount for Cash program, under which Exxon began charging dealers a separate 3% fee for processing credit transactions. However, Exxon said it would reduce the wholesale price of motor fuel by an amount that, on average, would offset the fee. The dealers alleged Exxon collected the fee but failed to reduce the price. On December 19, 2005, Exxon and the plaintiffs entered into a settlement agreement pursuant to which Exxon agreed to pay $1.075 billion.