Judge OKs $84.9M payout in truck stop scandal

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LITTLE ROCK, Ark. (AP) — A federal judge in Arkansasapproved a settlement Monday that pays
$84.9 million to 5,500 truckingcompanies who were cheated out of promised rebates by Pilot Flying J,the
nation’s largest diesel retailer.The settlement doesn’t put to rest a federal investigation in which
seven company employees have already entered guilty pleas.AttorneyAubrey Harwell Jr. of Nashville said
Jimmy Haslam, owner of theCleveland Browns and CEO of the truck stop chain, had no knowledge
thatemployees were cheating customers. The company is co-owned by Haslam’sbrother, Tennessee Gov. Bill
Haslam, who has said he isn’t involved withits operations.U.S. District Judge James Moody said Monday
that he was satisfied that the settlement was fair, reasonable and equitable."I don’t have any
reservation about giving final approval here," Moody said at the end of an hour-long hearing in
Little Rock.Moody also approved another $14 million in fees that will go to the truckers’
lawyers.Thesettlement reimburses trucking firms for their losses, plus 6 percentinterest, which is
calculated from the time each rebate should have beenpaid. The cheating dates back to 2005.Lawyers on
both sidesstressed that no one among the 5,500 companies agreeing to thesettlement filed an objection
and that only about 1 percent of affectedcompanies opted out of the agreement so they could file their
ownlawsuits.Don Barrett, an attorney for the truckers, said the settlement makes his clients
whole."What Pilot was required to do was done well and … honorably," Barrett
said.PilotFlying J conducted internal audits after the chicanery came to light inApril and, according to
Harwell, started reimbursing customers prior toa settlement being reached. An independent auditor
verified thecompany’s findings.The truckers’ lawsuit alleged a variety ofviolations, including fraud,
unjust enrichment, fraudulent concealment,breach of contract and other claims, all of which were dropped
with thesettlement.Pilot Flying J has annual revenues of about $30 billion.Prosecutorsalleged in court
documents that the scheme to cheat customers out ofrebate and discount money was well-known among sales
staff. Pleaagreements allege that sales staff took part in a training session thattaught employees how
to defraud trucking companies without gettingcaught.___Follow Chuck Bartels on Twitter at www.twitter.com/cbartelsLITCopyright
2013 The Associated Press. All rightsreserved. This material may not be published, broadcast, rewritten
orredistributed.

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