KNOXVILLE, Tenn. -- Following a closed deposition in a civil lawsuit against Knoxville, Tenn.-based truckstop chain Pilot Flying J over diesel rebates, CEO and Cleveland Browns owner Jimmy Haslam said, “I knew nothing about the misconduct of some of our former employees. I wish I could discuss this entire matter freely with you today and answer your questions as I did the plaintiffs. I can't do that yet."
Haslam “had absolutely no knowledge of any improper conduct related to customer fuel discounts,” said A.B. Culvahouse, a partner with O’Melveny & Myers, Washington, D.C., in a statement obtained by News5 Cleveland.
Haslam “openly and truthfully” answered attorneys’ questions, said Culvahouse. “We think this entire exercise today was nothing more than an effort by the plaintiffs to harass the company into a windfall settlement,” he said.
The lawsuit was filed by FST Express Inc., Columbus, Ohio, and HB Logistics LLC, Birmingham, Ala., trucking companies that declined to participate in an $85 million settlement between Pilot Flying J and 5,500 trucking companies in connection with a scheme to cheat customers out of promised discounts and rebates.
The scheme became public after federal agents raided the company's headquarters in April 2013. A 120-page FBI affidavit unsealed after the search contained transcripts of secretly recorded conversations among the sales team concerning the rebates.
Federal prosecutors have indicted eight former employees on fraud charges. Another 10 former employees have struck plea deals with prosecutors. The criminal case is scheduled for trial in October 2017.
Haslam has consistently denied knowing anything about the scheme and has never been accused of a crime.
“To our knowledge, it’s the first time Mr. Haslam has given sworn testimony about the massive fraud Pilot engaged in,” said Chip, Cooper & Elliot, attorneys for the trucking companies, in a statement also obtained by News5 Cleveland.
“This fraud was not addressed in the hastily settled class action, which was resolved before Pilot was required to provide any documents or testimony," it said. “The companies we represent aren’t seeking a windfall. They just want an answer to the question, ‘How could this massive fraud occur right under Jimmy’s nose?’ We believe it’s fair to ask the question, and we believe our clients deserve an answer.”
Pilot Flying J, one of the largest operator of travel centers in North America, has more than 650 retail locations.
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