Former Arrow Trucking employees filed a lawsuit seeking compensation because they were not given adequate notice of the shutdown, as required by law.

Lawsuits multiply after Arrow debacle

Tulsa, Okla.-based Arrow Trucking Co. filed for bankruptcy liquidation when it was swamped with lawsuits after closing its doors three days before Christmas.

The Jan. 8 filing by Arrow Trucking is for Chapter 7 bankruptcy, under which a court-appointed chief liquidation officer seizes and sells the company’s nonexempt assets to repay debt owed an estimated 1,000 to 5,000 creditors. The bankruptcy petition listed the company’s assets at between $100 million and $500 million and debts in a similar range.

Prior to that, Transportation Alliance Bank Inc. of Ogden, Utah, filed suit against Arrow Trucking, accusing the company of fraud and racketeering that cost the bank $12.5 million. TAB alleges that Arrow overbilled the institution and appropriated federal and state tax obligations for its own use.

Other suits have been filed against Arrow Trucking, including one by employees seeking unpaid wages and benefits.

The company’s sudden Dec. 22 shutdown stranded drivers, trucks and cargo around the country. Before that, employees said, payroll checks had bounced.

Former Arrow Trucking CEO Doug Pielsticker is also facing two lawsuits by separate Oklahoma banks for failure to repay promissory notes.