Judge Clears Pilot’s $84.9 Mln. Rebate-Fraud Settlement
A federal judge in Arkansas on Nov. 25 approved an $84.9 million settlement calling for Pilot Flying J to reimburse an estimated 5,500 customers who have alleged that the truck-stop chain shortchanged them on diesel fuel rebates dating to 2005.
The updated settlement number includes more than $66 million in rebates and interest for Pilot customers who alleged they were defrauded, an estimated $14 million will for the attorneys who have represented the class of Pilot customers in the lawsuit and settlement negotiations, and $4.5 million for a team of accountants who audited 7,000 Pilot customer accounts, the company said.
Pilot attorney Aubrey Harwell praised the settlement’s “fundamental fairness” and called it a “shining example of how the system should work,” according to a company statement.
Don Barrett, the lead attorney representing the 10 named plaintiffs in the class-action suit, has called the settlement a “spectacular result for the class.”
In July, the federal court granted preliminary approval of the settlement, and the final approval hearing Nov. 25 included a review of what had transpired since then, including the implementation of those steps required by the Court under its earlier orders.
The judge ruled that the settlement met the legal requirement of being “fair, reasonable and adequate.”
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.
