Pilot Flying J’s Class Action Settlement to Cost $72 million

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Pilot Flying J’s Class Action Settlement to Cost $72 Million

By Dominic Rivera

Court documents revealed that Pilot Flying J is projected to shell out approximately $72 million to settle the federal class action lawsuit that alleges fraud in its fuel rebate program.

The cash offer, which still needs approval at the Final Fairness Hearing scheduled for Nov. 25, will resolve the class action lawsuit alleging that Pilot CEO James A Haslam III implemented a “nationwide scheme to defraud and cheat” its trucking customers. While the CEO has denied knowledge about the wrongdoing, a number of class action lawsuits accuse him of giving his “blessing” to the scheme for the sake of boosting company profits.

It will be remembered that the FBI and Internal Revenue Service (IRS) raided Pilot’s headquarters on April 15, 2013, after the federal agencies received tips about the alleged cheating.

According to the terms of the Pilot Flying J class action settlement, Pilot will be required to have auditors examine its accounts and pay any money owed to Class Members plus 6-percent interest. Pilot will also be responsible for legal costs. U.S. District Judge James Moody gave preliminary approval to the class action settlement on July 16, 2013.

Reports are saying the $72 million cash offer is “an extraordinarily good settlement.” Trucking companies who are taking part in the settlement are supposed to agree not to sue Pilot Flying J anymore at a later date.

The cash settlement includes interest, cost of audits, administration, $14 million in attorney’s fees and $10,000 for each trucking company as incentive awards.

Among other terms of the class action settlement, Pilot Flying J will audit all customers who received rebate and/or discount from as early as 2008. All validated customers will receive 100 percent of any money owed, including 6-percent interest. There will be no claims filing process  — Class Members will automatically receive these benefits unless they opted out by the Oct. 15, 2013, deadline. More information about the Pilot Flying J Rebate Class Action Lawsuit Settlement can be found at www.DieselRebateSettlement.com.

The case is National Trucking Financial Reclamation Services, LLC et al. v. Pilot Corporation et al., Case No. 4:13-cv-00250-JMM, U.S. District Court for the Eastern District of Arkansas.

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