Lawsuit Finished for Frontier
Frontier Oil has reached agreement in principle on the terms of a settlement with the attorneys for the plaintiffs in the Beverly Hills lawsuits. Under the terms of the settlement, the plaintiffs will receive $10.0 million from Frontier Oil Corporation and its subsidiaries and its insurance provider. Frontier's share of the cost is approximately $6.2 million, which will be funded from the Company's commutation account with the insurance provider. The Beverly Hills lawsuits and the terms of the insurance policy are more fully described in the Company's 10-Q report for the quarter ended June 30, 2007. The insurance will remain in place and available to provide coverage for potential additional claims and indemnity claims.
Jim Gibbs, Chairman, President and CEO of the Company stated: "We are pleased to be able to put this litigation behind us. The proposed settlement will remove uncertainty inherent in this litigation, minimize future legal costs, and allow us to focus on the business of the Company."
Once a settlement agreement is finalized between the plaintiffs and Frontier, including releases by the plaintiffs, the settlement will be subject to approval by the Los Angeles Superior Court where the Beverly Hills lawsuits have been consolidated. Following court approval, the settlement should resolve all of the litigation against Frontier currently pending in the Los Angeles Superior Court or on appeal to the California Court of Appeals.
Frontier operates a 110,000 barrel-per-day refinery located in El Dorado, Kansas, and a 52,000 barrel-per-day refinery located in Cheyenne, Wyoming, and markets its refined products principally along the eastern slope of the Rocky Mountains and in other neighboring plains states.
- Frontier: $100 Million Share Repurchase Authorization (Feb 29)
- Frontier Oil Reports Most Profitable Year in Company History (Feb 26)
- Lawsuit Finished for Frontier (Oct 12)