Pilot Flying J Settles With Trucking Companies to Avoid Class Action Suit

According to the Associated Press, Pilot Flying J CEO and Cleveland Browns football franchise owner Jimmy Haslam has agreed to a settlement with truckers who say the company cheated them out of fuel rebates.

The AP reported that more than 20 trucking companies nationwide have lawsuits against Pilot, saying that they were defrauded out of money from a diesel-rebate program. Pilot Flying J is the largest truck-stop chain in North America.

The lawsuits alleged that Pilot sales staff promised volume discounts to some of its trucking customers that would be paid in the form of rebates and the company did not pay what was owed through its programs. According to the AP, five of the company’s sales employees have pleaded guilty in connection with the case and have agreed to cooperate with federal prosecutors in an ongoing criminal investigation into Pilot’s accounting and rebate practices. Haslam told reporters that he had “no knowledge of the alleged fraud scheme.”

The Wall Street Journal reported that under the settlement, plaintiffs in eight of at least 22 lawsuits would be paid any money owed, plus a 6 percent interest fee. The settlement also calls for Pilot to assume all legal and auditing costs associated with investigating losses resulting from the rebate program. The Journal said that the settlement is an attempt by Pilot to avoid a class action lawsuit.

Our firm represents consumers and businesses in class action litigation based upon false advertising, dangerous product defects, consumer fraud and commercially unconscionable conduct. If you feel like a product or service has been defrauded, contact our class action lawyers to represent you. Call our firm at (866) 971-0927 to see how we can help you.

KGG’s Corner: FBI and Internal Revenue Service agents executed search warrants April 15 at the Pilot headquarters in Knoxville, Tenn.

Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C. – Class Action Lawyers