Lawsuits Piling Up Against Pilot Flying J Following Raid
Alabama-based Osborn Transportation has filed suit in federal court in Alabama accusing Pilot Flying J of breach of contract and other charges over allegations it cheated trucking company customers out of fuel rebates.
Another lawsuit has been filed against the truckstop chain Pilot Flying J over allegations it cheated trucking company customers out of fuel rebates.
The Tennessean newspaper reports Alabama-based Osborn Transportation has filed suit in federal court in Alabama accusing Pilot Flying J of breach of contract, unjust enrichment fraud and violations of consumer protection statutes.
It cites the 120-page affidavit released by the FBI after agents from the bureau and the IRS raided the company’s Knoxville headquarters in mid-April, claiming the company systematically bilked customers out of rebate money and discounts they were due in a fuel purchase program without their knowledge.
Osborn claims Pilot Flying J “willfully devised and conspired to devise a scheme to defraud Pilot’s customer Osborn by deceptively reducing rebate amounts.” It is seeking punitive damages and restitution.
Since the raid, CEO Jimmy Haslam says the company has launched an internal investigation and placed some sales people on administrative leave. He has also promised to reimburse affected carriers and outlined steps the company is taking to address the allegations. Haslam has denied any wrongdoing or any knowledge about the alleged scheme.
Other lawsuits have been filed against Pilot Flying J in federal courts in Arkansas, Mississippi and Tennessee. The Osborn suit is the second to be filed in Alabama.
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