A lawsuit has been filed in New York City, accusing Sprague HP Holdings LLC and its affiliates of monopolistic practices in the liquid fuel industry.
Approved Oil Co. of Brooklyn, Inc., filed the complaint on January 15, 2025, in the United States District Court for the Eastern District of New York, alleging that Sprague unlawfully acquired control over the city’s liquid fuel distribution network to eliminate competition.
Approved Oil Co. of Brooklyn claims that Sprague HP Holdings LLC and its subsidiaries violated antitrust laws by acquiring significant control over New York City's deepwater terminals used for storing and distributing liquid fuels such as heating oil and diesel.
According to the complaint, Sprague’s acquisition of the Buckeye Terminal in March 2023 gave it control over approximately 83% of the city’s liquid fuel storage capacity, allegedly creating a monopoly.
Approved Oil Co. asserts this move was part of a strategy to stifle competition in violation of Section 7 of the Clayton Act and Section 2 of the Sherman Act.
The lawsuit details how Sprague’s actions have harmed competition and consumers. Approved Oil Co., which competes with Sprague by supplying liquid fuel to large institutional customers, including New York City agencies, claims that Sprague’s acquisition will force it out of business once its lease at the Buckeye Terminal expires in December 2025.
The complaint accuses Sprague of engaging in anticompetitive tactics, such as unnecessary tank inspections and blocking deliveries to hinder Approved Oil Co.’s operations.
Approved Oil Co. is seeking an injunction to prevent Sprague from closing the Buckeye Terminal or terminating its lease prematurely. The company also seeks treble damages, attorneys' fees, and expenses incurred due to what it describes as unlawful acquisition and anticompetitive conduct by Sprague.
The case is being heard under Case ID: 1:25-cv-00242.