KNOXVILLE, Tenn. --Pilot Flying J CEO and Cleveland Browns owner Jimmy Haslam wants a federal judge to dismiss a lawsuit by two trucking companies alleging that he directed a fuel-rebate fraud scheme for the family-owned truckstop chain, reported The Plain Dealer.
North Bergen, N.J.-based National Retail Transportation Inc. and Keystone Freight Corp. submitted a bill of particulars last month for a previously filed lawsuit that named Haslam, his company and four former Pilot Flying J executives as defendants.
That filing said Haslam never intended for Pilot Flying J to honor its fuel rebate agreement with the companies and contends that Haslam monthly directed workers to reduce the rebates due to the firms. The suit contends they were defrauded by Haslam's company between 2004 and 2013.
Haslam filed a motion to dismiss on December 5, saying the trucking companies' complaints failed to present any facts supporting their claim that Haslam was involved in the fraud.
The company and the former executives filed motions similar to Haslam's, said the report.
The plaintiffs have 21 days to respond to the motions for dismissal.
On April 15, 2013, the FBI and IRS raided Pilot Flying J's Knoxville headquarters, beginning an investigation into an alleged scheme perpetrated by some members of the company's sales staff to withhold rebates owed to trucking company customers for contacted diesel fuel purchases.
About a dozen participants have pleaded guilty to fraud and are cooperating with the authorities. Several executives have been fired.
Haslam has denied any knowledge of the rebate scheme.
A federal judge dismissed racketeering and deceptive trade practices charges against the company, and Pilot Flying J has reached an understanding with the U.S. Attorney's office, Eastern District of Tennessee, and the U. S. Department of Justice, that the company will not be prosecuted for fraud.
Pilot Flying J reached an $85 million settlement with hundreds of trucking customers who were affected by the alleged fraud; however, more than a dozen companies are pursuing lawsuits outside of the settlement.
Their cases were consolidated in federal court in Kentucky, where U.S. District Judge Amul Thapar on July 31 ordered the dispute to mediation.
The company will also pay $92 million as part of an agreement with the U.S. Attorney to avoid fraud charges.
Based in Knoxville, Tenn., Pilot Flying J has more than 650 retail locations. The Pilot Flying J network provides drivers with access to more than 65,000 parking spaces for trucks, 4,400 showers and more than 4,500 diesel lanes offering diesel exhaust fluid (DEF) at the pump.
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