Pilot Seeks Court Approval of $72 Mln. Rebate-Fraud Settlement

Posted in: Business Factoring News, Freight Bill Financing News, Freight Factoring News, Freight Hauling Financing, Freight Hauling News, Staffing Company Finance News, Staffing Faqctoring News, Trucking Finance News, Trucking Financing News, Trucking News- Nov 22, 2013 No Comments

Attorneys representing Pilot Flying J and an estimated class of 5,500 truckers alleged to have been fraudulently shortchanged diesel fuel rebates will return to federal court in Little Rock, Ark., on Nov. 25, seeking final approval of a $72 million class-action settlement.

If approved, the July 16 agreement would provide that all members of the lawsuit class be compensated 100% of the amount they were shortchanged, plus interest calculated at 6%.

Pilot said about 150 potential members of the class have rejected the settlement. Some of them have sued or plan to pursue court actions alleging that they were fraudulently shortchanged fuel rebates.

“The settlement is fair, adequate and reasonable for the class, as confirmed by the fact that no class member chose to object and only approximately 1% opted out,” Pilot said in a Nov. 15 legal brief asking the judge to grant final approval of the settlement.

Pilot has been the target of a federal investigation into fraudulent diesel fuel rebates since April, when FBI agents raided the company’s Knoxville, Tenn., headquarters. Since the raid, seven Pilot executives have pleaded guilty to engaging in fraudulent rebate schemes.

 

source-http://www.ttnews.com/articles/basetemplate.aspx?storyid=33551&t=Pilot-Seeks-Court-Approval-of-%2472-Mln-Rebate-Fraud-SettlementARTICLEAD3