Pilot Flying J to pay $72 million in fuel rebate withholding settlement, court docs show

| November 06, 2013

pilot fuelThe total amount Pilot will dole out in its class-action settlement with trucking companies who sued the company over an alleged fuel rebate withholding scheme is $72 million, according to a petition Pilot submitted this week to the Arkansas court that settled the case in July. 

Of the total, $55 million is designated as the principle amount owed — what the truck stop chain had allegedly defrauded customers out of — $4.1 million will be paid to class members as part of the 6 percent interest owed on the principle, $3.5 million will go to the cost of the internal auditing and another $14 million is designated for attorneys’ fees, though that amount could be smaller, the court documents say.

Related

Pilot asks court to dismiss lawsuit due to lack of evidence

Pilot Flying J has asked a federal court in Alabama to throw out a lawsuit filed by Wright Transportation in the alleged fuel rebate withholding scheme aftermath, due to the fact the company has not presented an actual claim against it, Pilot says.

The petition also says 59 members of the class, presumably trucking companies, have opted out of the settlement, either to pursue other legal action or for other reasons. 

Pilot began being flooded with lawsuits after federal agents raided the company’s Knoxville headquarters in April, then released unsealed an affidavit later in the week detailing allegations against the company that it had intentionally and systematically defrauded trucking company customers out of millions of dollars in fuel rebates over a roughly 7-year period. 

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Pilot’s petition to approve the $72 million settlement.

Pilot CEO Jimmy Haslam has maintained he had no knowledge of the scheme, which the affidavit says was allegedly done to boost Pilot profit and commissions of its sales staff. 

Haslam unveiled in May a five-point plan to pay back money owed to its customers and ensure the company does not withhold fuel rebates in the future, including ending the manual rebate calculations, which apparently was the source of the fraud.

Several Pilot employees also have pleaded guilty to various fraud charges since April. 

Click here to see all of Overdrive‘s coverage of the Pilot allegations.

  • g

    Crimes were obviously committed here if they are paying 72 Million??? If it was a TRUCKER he would be in JAIL for his CRIMES but since its the BROTHER of the TENN. Governor then He gets to go FREE??? Is THAT Justice????

  • g

    Haslam should be in Prison by Now….why is he not charged with crimes against The American people?? He is guilty and needs to be in prison?? What about THAT part??

  • Joe Payton

    For him to be guilty you would have to prove that he knowingly took part or that he later knew and did nothing about it.

  • Kevin J. Reidy

    Haslam has his lawyers fighting tooth and nail to avoid deposition, he knows that being deposed about what he knew and when he knew it would sink him.

    Of course, if Haslam had nothing to hide he would have volunteered to be deposed and totally cleared the air as to his involvement in anything suspect going on in his company.

  • BunniRabbyt

    It happened on Haslam’s watch He was Captain of the ship he should go down with it. Instead he wants to bow out and take no responsibility for his part except pay back the money and move on. No repentance of taking hard earned money from truckers. Greed a terrible sin that continues to grow.

  • Joe Payton

    I agree that if he has nothing to hide then he should not be blocking anything. It only makes it worse for him. I still believe in the ” innocent until proven guilty” that we all are supposed to be living under. Hard to do ion this business where we have to prove innocence all the time.

  • Jean C Couture

    The true amount of what Pilot will have to pay is not what they say ..After all the legal cases over and punitive damage and legal fees ..It will be a Billion $ and Jail Time for all them http://www.pilotflyingjclassaction.com