Individuals and entities that received heating fuel from Peterson’s Oil Service Inc. between 2012 and 2025 may be eligible to receive a payment from a class action settlement.
Overview
Peterson’s Oil Service Inc., doing business as Peterson Oil, Cleghorn Oil, and Cape Discount Fuel, agreed to pay $14 million to resolve a class action lawsuit alleging it blended elevated levels of biodiesel into its heating oil. Plaintiffs claimed this practice reduced fuel efficiency, caused heating system shutdowns, and resulted in long-term equipment damage, leading customers to pay more for inferior fuel.
The company denied the allegations but agreed to settle to avoid the cost and uncertainty of continued litigation.
Who Is Eligible
You may be a class member if you meet one or more of the following criteria:
- You purchased heating fuel from Peterson Oil, Cleghorn Oil, or Cape Discount Fuel between Jan. 1, 2012, and Nov. 12, 2025.
- You own or previously owned heating equipment that came into contact with, stored, or used fuel delivered by Peterson Oil during that period, even if you were not the direct customer, such as landlords or property buyers.
- You are a successor in interest, assignee, subrogee, or another party claiming through a class member.
The settlement administrator identified potential class members using Peterson Oil’s records. Individuals who received a notice are likely included, but current owners of heating equipment that used Peterson Oil fuel may still submit a claim even if they were not the original customer.
Available Compensation
Class members may qualify for two types of payments:
Heat loss and repair incident payments:
Class members may claim compensation for each incident in which they lost heat or hot water or paid for repairs due to heating system shutdowns occurring between Jan. 1, 2012, and July 5, 2016, or between July 5, 2019, and Jan. 29, 2026.
- Up to $180 per incident may be claimed without documentation by attesting under oath to the incident dates.
- If out-of-pocket costs exceeded $500 for a single incident, claimants may submit documentation to seek reimbursement of the full amount.
At least $1,426,836.67 is allocated for these claims. If total claims exceed this amount, payments will be reduced on a proportional basis.
Pro rata fuel purchase payments:
Class members may also receive a pro rata payment based on the total number of gallons of Peterson Oil fuel delivered to them during the class period. These payments are intended to compensate for alleged overcharges and equipment damage.
A total of $6,806,496.66 is allocated for pro rata payments. Each class member’s share will be calculated using the following formula:
Pro rata share = (Total gallons delivered to the class member ÷ Total gallons delivered to all class members) × Pro rata fund
Class members who previously received payments from a partial settlement covering July 5, 2016, through July 5, 2019, will have their new payment reduced by that amount, except for heat loss incident payments.
How to File a Claim
Class members may submit a customer claim form or a current owner claim form online, request a form by calling 1-844-625-7313, or download and mail a completed form to the settlement administrator. All claims must be submitted by Feb. 11, 2026.
Mailing address:
Peterson Oil Class Action Settlement
c/o Optime Administration LLC
P.O. Box 3206
Brockton, MA 02304
Information Required
For heat loss claims of up to $180 per incident, claimants must attest under oath to the dates of the incidents.
For heat loss claims exceeding $500 per incident, claimants must provide supporting documentation showing out-of-pocket repair or replacement costs.
Payment Method
Settlement payments will be issued by check and mailed to the address provided on the claim form.
Settlement Fund Breakdown
The $14,000,000 settlement fund includes:
- Settlement administration fees of up to $365,000
- Attorneys’ fees of $4,666,666.67
- Attorneys’ expenses of up to $550,000
- Service awards of $15,000 each to nine class representatives, totaling $135,000
- A dispute fund of up to $50,000
- Estimated payments to class members totaling $8,233,333.33
Important Dates
- Fairness hearing: Jan. 29, 2026
- Claim deadline: Feb. 11, 2026
Payout Timing
Payments are expected to be mailed approximately 24 days after all claims are processed and the court grants final approval of the settlement.
Reason for the Settlement
The lawsuit alleged that Peterson Oil blended higher-than-standard levels of biodiesel into heating oil, causing system failures, long-term equipment damage, and higher costs for consumers. Peterson Oil denied these claims but agreed to settle to avoid further litigation.
Key Details at a Glance
Settlement amount: $14 million
Potential award: Per-incident payments and pro rata fuel-based payments
Claim deadline: Feb. 11, 2026
