Final Ruling on Pilot Flying J Settlement Expected

Phil Cohen

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Four months after receiving preliminary approval, the Pilot Flying J’s proposed settlement in a class-action lawsuit is scheduled for a final ruling today in the U.S. District Court for Eastern Arkansas in Little Rock.

Ruling on Pilot Flying J Settlement

Pilot Flying J, helmed by Cleveland Browns owner Jimmy Haslam, has been the subject of an ongoing investigation since an April search of the business uncovered a fuel rebate scam that stripped customers of thousands of dollars per month over the course of several years. Five Pilot employees have since pled guilty to criminal charges including mail fraud and conspiracy to commit wire fraud, and dozens of trucking companies have filed or are planning to file suit against Pilot Flying J.

The July settlement proposes a deal for $72 million: approximately $55 million to cover the outstanding fuel rebates, plus six percent interest, more than $14 million in legal fees, and millions more to cover auditing costs for each company affected. The settlement covers current class members but allows them to opt-out and pursue separate litigation if they choose.

Once the settlement is approved, third-party auditors will oversee a final calculation of money owed to each company included in the settlement and payments will go out within 30 days.

Pilot Flying J claims that 59 class members, or one percent of the class, have chosen to opt-out of the settlement. In addition, twenty of the thirty companies who have already filed suit also opted out of the settlement and will continue their individual cases.

Attorneys for Pilot Flying J warn trucking companies against opting out, claiming that facts of the case will make it difficult for them to win a judgment against the company. In addition, they are quick to point out that the settlement will pay them “more than what they are owed” without having to wait for the litigation process.

The current settlement is separate from the ongoing criminal investigation. We will provide updates once the District Court issues its ruling.

Update: The verdict is in on the ruling on Pilot Flying J. U.S. District Court approved an $84.9 million settlement to be paid to the 5,500 trucking companies who did not opt-out. This amount the unpaid rebates and six percent interest on each dating back to the original payment date of the rebate, some going back to 2005. District Court Judge Moody also approved $14 million in attorney fees.

This ruling will not affect the ongoing criminal investigation.

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Phil Cohen

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.

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