US Crude Oil Price Manipulation Lawsuit Settled for $16.5 Million

Reuters reported that a $16.5 million settlement has been reached in the US class action lawsuit accusing Arcadia Petroleum Ltd., Parnon Energy and two traders of illegally manipulating the price of crude oil in early 2008.

As quoted in the market news:

The preliminary settlement was filed late Wednesday night in Manhattan federal court and requires court approval.

It resolves charges that the companies, Arcadia trader Nicholas Wildgoose and Parnon trader James Dyer violated federal antitrust and commodities laws by using futures and options to benefit financially from an artificial crude oil shortage they created at a key hub in Cushing, Oklahoma.

None of the defendants admitted wrongdoing.

The settlement came after the U.S. Commodity Futures Trading Commission last August imposed a $13 million civil fine against them in a related case, and limited Parnon’s ability to trade oil for three years. According to a filing in the class action, an expert for the plaintiffs estimated that up to $1.05 billion of damages could be proven at trial.

Click here to read the full Reuters report.