Peterson Oil heating company is facing a class-action lawsuit after being accused of mixing high levels of biodiesel in its heating oil, causing damage to the heating systems of many of its customers. Although the company has denied committing any wrongdoing, it has agreed to a $14 million settlement to resolve claims from affected customers. Customers who purchased heating oil from the brand between January 1, 2012, and November 12, 2025, will be able to file claims, noting that Peterson Oil operated both with Cleghorn Oil and Cape Discount Fuel. To be eligible for compensation, damages must have occurred between January 1, 2012, and July 5, 2016, or between July 5, 2019, and January 29, 2026.
Claimants will be able to request two types of compensation: a proportional payment taken from the total settlement fund, or a payment for each instance of damage caused. In the event that the client does not have documentation to verify the dates of the damages, they may claim $180, and those who have had more than $500 can submit the documentation that proves it and claim the full amount. To claim this compensation, claimants must fill out an online form or send it by mail to Peterson Oil Class Action Settlement, c/o Optime Administration LLC, PO Box 3206, Brockton, MA 02304. The deadline to submit a claim is February 11, 2026.
Lawsuit against Peterson Oil
After being accused of mixing high levels of biodiesel into its heating oil, causing damage to customers’ heating systems, Peterson Oil Heating Company is facing a class-action lawsuit. The plaintiffs claim that this fuel is less efficient and more expensive than regular heating oil, in addition to causing damage to their heating systems.
Although the heating company denied any wrongdoing, it has agreed to pay $14 million to settle the claims against it. Under the agreement, those who purchased heating oil from Peterson Oil between January 1, 2012, and November 12, 2025, during which the company operated with both Cleghorn Oil and Cape Discount Fuel, can make a claim. To reach all affected individuals, the settlement administrators used company records to identify and notify those impacted.
Compensations
To be able to request compensation, the clients’ damages must have occurred between January 1, 2012, and July 5, 2016, or between July 5, 2019, and November 12, 2025. There are two types of compensation that claimants can request. On one hand, they can request a payment for each case of damage when they have lost heat or hot water or have had to pay for repairs due to the shutdown of the heating equipment. In this case, they can claim up to $180 per incident, without the need for documentation to prove it, if witnessed under oath. If the cost of repairs exceeds $500, they can submit documentation for the total amount.
Through this documentation, the claimant must provide invoices of repairs showing that they suffered this type of loss and had to cover these costs. Payments may be reduced proportionally based on the number of accepted claims. The second type of compensation is based on the total gallons of Peterson Oil fuel they received during the class period. In this case, each claimant’s share is calculated as follows: pro rata = (total gallons delivered during the class period) / (total gallons delivered to all class members) pro rata fund, and the pro rata fund is $6,806,496.66. The remaining money from the settlement fund will be used to pay attorneys’ fees and other external expenses.
How to claim the compensation
Once they have ensured that they are eligible, affected individuals should submit a claim form as a customer or owner online, or, if not, request it by phone by calling 1-844-625-7313. If preferred, they can also print it and send it by mail to Peterson Oil Class Action Settlement, c/o Optime Administration LLC, PO Box 3206, Brockton, MA 02304, with a deadline of February 11, 2026. Payments will be issued by the settlement administrator once final approval has been granted.
Frequently asked questions
Who is eligible to claim compensation?
Customers who purchased heating oil from Peterson Oil, Cleghorn Oil, or Cape Discount Fuel between January 1, 2012, and November 12, 2025, and whose systems were damaged during the specified periods (2012-2016 or 2019-2025) are eligible.
How much money can I receive for equipment damage?
If you don’t have invoices but make a sworn statement, you can claim $180 for each incident. If the damages exceed $500, you can claim the full amount by providing the corresponding repair invoices. There is also an option for a proportional payment based on the gallons of fuel purchased.
How and by when can I file a claim?
You must complete an online claim form or send it by mail to the administrator’s address in Brockton, MA. The absolute deadline to submit your claim is February 11, 2026.