Pilot Settles Two More Rebate Suits

By Walter F. Roche Jr.

Pilot Flying J, the national truckstop chain, has reached a confidential settlement agreement with two New Jersey trucking firms that had charged the Knoxville based firm with racketeering stemming from rebate skimming allegations.
The settlements with National Retail Transportation and Keystone Freight were confirmed by attorneys for all parties.
The settlement followed a ruling by a federal judge that the two New Jersey firms could pursue racketeering and fraud charges against Pilot. Lawyers for Pilot had sought to have the charges dismissed.
Leonard Leicht, the New Jersey attorney representing the truckers, said the agreement was reached last week. That was confirmed by Aubrey Harwell of Nashville who represents Pilot. Leicht said he could not discuss the details.
Four other trucking firms, including FST Express of Ohio, are continuing their suits which have been merged before U.S. District Judge Amul Thapar in Kentucky.
Last month Thapar ruled that the two New Jersey firms could continue to pursue their claims that Pilot engaged in racketeering and violated New Jersey and federal law by secretly reducing promised rebates to truckers.
Thapar did throw out some of the truckers allegations against Pilot and its top executives and principal owner James A. Haslam.
The settlements are the latest development following an April 15, 2013 raid on Pilot's headquarters by FBI and IRS agents.
In a subsequent court filing federal agents detailed a conspiracy by top Pilot sales executives to secretly reduce rebates promised to truckers who they thought would not notice. Subsequently 10 Pilot employees entered guilty pleas to mail and wire fraud changes. They all await sentencing.
Pilot subsequently settled a slew of civil suits for a total of $85 million, but seven firms opted out of that settlement. Pilot also agreed to pay the federal government $92 million to settle civil charges related to the rebates.
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