How Do I Qualify For the Peterson Oil Settlement?

You qualify if you were a customer of Peterson Oil (also operating as Cleghorn Oil or Cape Discount Fuel) who received fuel containing more than 5% biodiesel at any point since January 1, 2012. You also qualify if you own heating equipment that came in contact with, stored, or used such fuel — even if you were not a direct customer, such as if you bought a home from a former Peterson Oil customer or you owned a rental property where a tenant used Peterson Oil.

How Much Can I Get From the Peterson Oil Settlement?

Payments come from two funds. The Pro Rata Fund (at least $6,806,496.66) pays class members based on the total gallons of fuel they purchased from Peterson Oil during the class period. The Heat Loss Fund (at least $1,426,836.67) pays up to $180 per heating equipment shutdown, or actual out-of-pocket costs if they exceeded $500 for a single episode. Your exact payment depends on how many gallons you purchased relative to all class members combined.

Do I need to file a claim to get paid?

For Pro Rata Fund payments (based on gallons purchased), no claim form is needed — payments are calculated automatically based on Peterson Oil's delivery records. For Heat Loss Fund payments (equipment shutdowns), you must submit a claim form with a signed attestation listing the dates of qualifying shutdowns. If your out-of-pocket losses for a single shutdown exceeded $500, you need supporting documentation.

What did Peterson Oil do wrong?

The lawsuit alleges that Peterson Oil sold home heating oil that had been blended with high concentrations of biodiesel without disclosing this to customers. Customers believed they were receiving standard No. 2 heating oil. The biodiesel-blended fuel allegedly caused damage to oil storage tanks, heating systems, and associated equipment. It was also worth less than what customers paid and required more fuel to generate the same amount of heat.

What names did Peterson Oil operate under?

Peterson Oil operated under multiple names: Peterson's Oil Service, Inc., Peterson Oil, Cleghorn Oil, and Cape Discount Fuel. If you bought heating oil from any of these companies since January 1, 2012, you may be a class member.

What kind of damage did the biodiesel fuel cause?

According to the lawsuit, the high-biodiesel fuel caused multiple problems including damage to oil storage tanks and heating systems, heating equipment shutdowns requiring nozzle and filter replacements ahead of schedule, the need for air-fuel ratio adjustments and cad-cell replacements, and reduced heating efficiency meaning customers had to buy more fuel to get the same amount of heat.

What if I was a landlord and my tenant used Peterson Oil?

You may qualify as a class member. The settlement class includes landlords who owned heating equipment at a property where a tenant was a Peterson Oil customer and the equipment came in contact with the biodiesel-blended fuel. You would be eligible for payments from both the Heat Loss Fund and the Pro Rata Fund.

Who is paying the $14 million settlement?

The settlement is funded by three sources: United States Fire Insurance Company and North River Insurance Company are paying $8,300,000; Federated Mutual Insurance Company is paying $4,500,000; and Peterson Oil is paying $1,200,000. The total is $14,000,000 on a non-recourse basis, meaning no money reverts back to the defendants.

What qualifies as a 'heat loss episode' for the Heat Loss Fund?

To qualify for a Heat Loss Fund payment, your heating equipment must have shut down under one of these circumstances: the repair required replacing a nozzle or filter within 12 months of a previous replacement; the repair involved an adjustment to air/fuel ratios or cad-cell replacement without other changes; or a technician told you that the shutdown was caused by Peterson Oil's fuel.

How are Pro Rata Fund payments calculated?

Your Pro Rata Fund payment is based on your percentage of total gallons purchased. The settlement administrator divides your total gallons of fuel purchased from Peterson Oil during the class period by the combined total gallons purchased by all class members. That percentage is applied to the Pro Rata Payment Base. For example, if you purchased 10,000 out of 1,000,000 total gallons, you would receive 1% of the Pro Rata Payment Base.

How long has the Peterson Oil lawsuit been going on?

The lawsuit was filed on March 11, 2019 in Massachusetts Superior Court. It was vigorously litigated for over six years, including extensive discovery and was scheduled for a jury trial beginning September 30, 2025. The parties reached a settlement through mediation on September 19, 2025, with the agreement finalized on October 28, 2025.

Peterson Oil $14M Settlement: Customers Get Paid for Heating Oil Secretly Blended With Biodiesel That Damaged Their Equipment

Q: What is the Total Settlement Amount?

The gross settlement amount is $14,000,000. After attorneys' fees ($4,666,666.67), litigation costs (up to $550,000), administration fees (up to $365,000), plaintiff incentive payments ($15,000 each for 9 plaintiffs), and a dispute fund ($50,000), at least $8,233,333.33 goes directly to class members.

Q: What is the Claim Form Deadline?

The claim deadline for Heat Loss Fund claims is 90 calendar days after the settlement notices are mailed and made available online. The exact date will be posted on the settlement website once notices go out. Pro Rata Fund payments do not require a claim form.

Q: What if I bought a house from a former Peterson Oil customer?

You may still qualify. The class includes all persons who own heating equipment that came in contact with Peterson Oil's biodiesel-blended fuel, including successors in interest such as homeowners who purchased a property that previously received Peterson Oil deliveries. Current property owners will receive a separate notice and can submit a Current Owner Claim Form.

By Steve Levine

Peterson Oil Biodiesel Class Action Settlement

Published: February 11, 2026

Settlement Amount:

$14 Million

Claim Deadline:

90 days after notices are mailed (exact date TBD — check settlement website)

Proof required:

No for Pro Rata payments (automatic) — Attestation required for Heat Loss Fund claims

If you bought home heating oil from Peterson Oil, Cleghorn Oil, or Cape Discount Fuel at any point since January 1, 2012, you may be owed money from a $14,000,000 class action settlement. The lawsuit alleges that Peterson Oil sold heating oil that was secretly blended with high concentrations of biodiesel — without ever telling customers — causing equipment damage, heating shutdowns, and higher fuel costs.

The settlement provides two types of payments: automatic Pro Rata payments based on the total gallons of fuel you purchased, and Heat Loss Fund payments of up to $180 per heating equipment shutdown (or actual costs if they exceeded $500). Over $8.2 million goes directly to class members.

Peterson Oil denies all allegations of wrongdoing but agreed to the settlement after six years of litigation to avoid the costs and risks of a jury trial.

What Did Peterson Oil Do?

According to the lawsuit, Peterson Oil sold home heating oil that had been blended with high concentrations of biodiesel to customers across Massachusetts, while representing the fuel as standard No. 2 heating oil. Customers had no idea they were receiving a different product.

The problem with undisclosed biodiesel blending in home heating systems:

• Equipment damage: The biodiesel-blended fuel allegedly damaged oil storage tanks, heating systems, and associated heating equipment
• Heating shutdowns: Many customers experienced their heating equipment shutting down, requiring premature nozzle and filter replacements, air/fuel ratio adjustments, and cad-cell replacements
• Less heat per gallon: The blended fuel allegedly produced fewer BTUs (less heat) than standard No. 2 heating oil, meaning customers had to buy more fuel to heat their homes
• Overcharging: Customers paid the price for standard heating oil but received a fuel that was worth less

Peterson Oil operated under multiple brand names: Peterson's Oil Service, Inc., Peterson Oil, Cleghorn Oil, and Cape Discount Fuel. If you received heating oil from any of these companies since January 1, 2012, you may be a class member.

What is the Total Settlement Amount?

The gross settlement is $14,000,000, funded by three sources:

• U.S. Fire Insurance Co. & North River Insurance Co.: $8,300,000
• Federated Mutual Insurance Co.: $4,500,000
• Peterson Oil: $1,200,000

This is a non-recourse settlement — no money goes back to the defendants. After attorneys' fees, costs, and administration expenses, at least $8,233,333.33 goes directly to class members through two separate funds.

How Do I Qualify?

You are a class member if any of the following apply to you:

• You were a customer of Peterson Oil (or Cleghorn Oil or Cape Discount Fuel) who received fuel containing more than 5% biodiesel at any point since January 1, 2012
• You own heating equipment that came in contact with, stored, or used Peterson Oil's fuel — even if you were not the customer who ordered it
• You bought a home from a former Peterson Oil customer and your heating equipment was exposed to the biodiesel-blended fuel
• You are a landlord who owned the heating equipment at a property where a tenant used Peterson Oil

If you received a notice in the mail about this settlement, you are likely a class member.

How Much Can I Get Paid?

The class member payment pool is divided into two funds totaling at least $8,233,333.33:

1. Pro Rata Fund (at least $6,806,496.66 — 82.67% of the Class Fund)
Every class member receives an automatic payment based on the total gallons of fuel they purchased from Peterson Oil during the class period. No claim form is needed — the Settlement Administrator calculates your share using Peterson Oil's delivery records.

Your payment is calculated as: (Your total gallons ÷ All class members' total gallons) × Pro Rata Payment Base

For example, if you purchased 10,000 gallons and all class members combined purchased 1,000,000 gallons, your share would be 1% of the Pro Rata Payment Base.

2. Heat Loss Fund (at least $1,426,836.67 — 17.33% of the Class Fund)
If your heating equipment shut down due to Peterson Oil's fuel, you can claim up to $180 per shutdown to cover both out-of-pocket repair costs and the inconvenience of losing heat. To receive this payment, you must submit a claim form with a signed attestation listing the dates of your qualifying shutdowns.

Your heating equipment shutdown qualifies if:

• The repair required replacing a nozzle and/or filter within 12 months of having them previously replaced
• The repair involved an adjustment to air/fuel ratios and/or cad-cell replacement without other changes
• A technician told you the shutdown was caused by Peterson Oil's fuel

If a single shutdown cost you more than $500 in out-of-pocket expenses, you can claim your actual losses (with documentation) instead of the $180 flat rate.

Note: Any unused money from the Heat Loss Fund rolls into the Pro Rata Fund, increasing everyone's automatic payment.

Do I Need to File a Claim?

For Pro Rata Fund payments: No. Your payment is calculated automatically based on Peterson Oil's delivery records. You do not need to submit a claim form.

For Heat Loss Fund payments: Yes. You must submit a Heat Loss Fund Claim Form with a signed attestation (under penalty of perjury) listing the dates of qualifying heating equipment shutdowns. If claiming more than $500 for a single episode, you must include supporting documentation.

Claim forms will be available on the settlement website and in hard copy upon request.

What is the Claim Form Deadline?

The deadline to submit Heat Loss Fund claims is 90 calendar days after the settlement notices are mailed and made available online. The exact deadline will be posted on the settlement website once the notices are sent out.

A reminder postcard will be mailed to class members who have not submitted a claim 55 days after the notices go out.

What if I Bought a House From a Former Peterson Oil Customer?

If you purchased a property where Peterson Oil previously delivered fuel, your heating equipment may have been damaged even though you were never a Peterson Oil customer yourself. The settlement accounts for this.

Current property owners will receive a separate notice and can submit a Current Owner Claim Form to claim payments from both the Heat Loss Fund and the Pro Rata Fund.

If the original customer disputes your claim, the Settlement Administrator will contact both parties and offer three options: split the payments equally, agree on an alternate sharing arrangement, or submit the dispute to the Court for resolution.

When Will Payments Be Sent?

The settlement agreement was signed on October 28, 2025. The timeline is:

• Preliminary approval: Filed with the Court (pending)
• Notices mailed: 14 days after preliminary approval
• Objection deadline: At least 45 days after notices are mailed
• Claim deadline: 90 days after notices are mailed
• Fairness Hearing for Final Approval: Approximately 90 days after preliminary approval
• Payment of settlement funds: Within 14 days after the approval date (31 days after final approval order, assuming no appeals)
• Checks mailed to class members: Within 10 business days after the Settlement Administrator receives the funds

Checks expire after 120 days. A reminder postcard will be sent 85 days after checks are mailed to anyone who hasn't cashed their check. If unclaimed funds total $25,000 or more, they will be redistributed pro rata to class members who did cash their checks.

How Much Are the Attorneys' Fees?

Class Counsel (Regan Strom, P.C. and Christopher L. DeMayo, Esq.) will receive:

• Attorneys' fees: $4,666,666.67 (one-third of the gross settlement)
• Litigation costs: Up to $550,000
• Administration costs: Up to $365,000 (paid to the Settlement Administrator, Optime Administration, LLC)

Each of the 9 named plaintiffs will receive an incentive payment of $15,000 ($135,000 total).

After all fees, costs, and incentive payments, at least $8,233,333.33 goes to the class.

Can I Object to the Settlement?

Yes. Class members who wish to object must submit a written objection by mail to the Settlement Administrator. The objection must be received at least 45 days after the notices are mailed (and at least 15 days before the Fairness Hearing). Your objection must include:

• The words “I object to the settlement in the Peterson Oil Class Action Settlement” or something similar
• All reasons for your objection
• Your name, address, and telephone number

If you want to speak at the Fairness Hearing, you must state that intention in your written objection. You may also hire your own attorney at your own expense.

Background: Six Years of Litigation

This case has a long history. The lawsuit was originally filed on March 11, 2019 in Massachusetts Superior Court (Suffolk County). The case was vigorously litigated for over six years, with the complaint amended six times. Key events:

• 2019: Lawsuit filed; Massachusetts Superior Court certified the class
• 2019-2025: Extensive discovery between the parties
• September 19, 2025: Full-day mediation with JAMS mediator Lawrence Pollack in New York City
• October 6, 2025: Confidential settlement term sheet signed
• October 28, 2025: Final settlement agreement executed

The case was scheduled for a jury trial beginning September 30, 2025, just days after the mediation session. Multiple insurance coverage lawsuits were also filed in federal court.

How Do I Find Class Action Settlements?

Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:

The case is Sheena Marandino, et al. v. Peterson's Oil Service, Inc., et al., Suffolk County Docket No. 1984-CV-0782 BLS2, in the Trial Court of the Commonwealth of Massachusetts — Superior Court Department.

Settlement Agreement

Sources

• Settlement Agreement & Release, dated October 28, 2025
• Sheena Marandino, et al. v. Peterson's Oil Service, Inc., et al., Suffolk County Docket No. 1984-CV-0782 BLS2 (Mass. Superior Court)
• Settlement Administrator: Optime Administration, LLC
• Class Counsel: Regan Strom, P.C. (Jeffrey S. Strom, Esq. & John Regan, Esq.) and Christopher L. DeMayo, Esq.

Filing Class Action Settlement Claims

Please submit only truthful and accurate claims. Submitting false information can result in denial of benefits and potential penalties. If you are unsure whether you qualify, review the official notice or contact the Settlement Administrator. OpenClassActions.com is a consumer news site and is not the settlement administrator or a law firm.

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Class Action Summary
Status	Proposed Settlement — Awaiting Court Approval
Claim Form Deadline	90 days after notices are mailed (Heat Loss Fund claims only; Pro Rata payments are automatic)
Settlement Amount	$14,000,000 (gross); at least $8,233,333.33 to class members
Category	Consumer Fraud / Product Liability / Heating Oil
Estimated Payout	Pro Rata payment based on gallons purchased (automatic) + up to $180 per heating shutdown from Heat Loss Fund (claim required)
Case Number	Suffolk County Docket No. 1984-CV-0782 BLS2
Case Title	Sheena Marandino, et al. v. Peterson's Oil Service, Inc., et al.
Court	Trial Court of the Commonwealth of Massachusetts — Superior Court Department
Settlement Agreement Date	October 28, 2025
Class Period	January 1, 2012 to present
Defendants	Peterson's Oil Service, Inc. (d/b/a Peterson Oil, Cleghorn Oil, Cape Discount Fuel); Howard Wood Peterson Jr.; Sharon Peterson; Kristen Peterson Halus; plus insurance carriers
Class Counsel	Regan Strom, P.C. and Christopher L. DeMayo, Esq.
Settlement Administrator	Optime Administration, LLC
Key Allegation	Heating oil secretly blended with high-concentration biodiesel caused equipment damage, shutdowns, and overcharging