A Harrison company that helps businesses collect claims in class action lawsuits says Purchase-based PepsiCo Inc. has dodged more than $1 million in fees for its services.
Kent Recovery Services accused PepsiCo of breach of contract in a Sept. 28 complaint filed in Westchester Supreme Court.
But a PepsiCo official claims that Kent did not do any significant work, according to exhibits of emails filed with the lawsuit.
The dispute is over the Mercedes-Benz Blue Tec settlement in a 2016 class-action lawsuit filed in New Jersey federal court. The case concerned sedans, SUVs and cargo vans manufactured from 2009 to 2016 that emit more nitrogen oxides that permitted under state and federal clean air laws.
Owners and lessees were eligible for cash payments of $2,693 to $3,590 per vehicle.
On April 13, 2021, PepsiCo senior litigation counsel Charles S. Biener signed a deal with Kent managing director Leonard E. Veneziano appointing Kent as its exclusive claims agent in the Mercedes-Benz case. PepsiCo agreed to pay Kent 20% of the funds it received.
Two days later, Biener asked Veneziano to “hold off on doing anything further.” PepsiCo staff had already been working on the claim for several months, the email states, “directly with Mercedes and with another third-party.”
Three months later, Veneziano said in an email to Biener that Kent expected PepsiCo to honor the deal.
“I am surprised and disappointed by Kent’s position,” Biener replied the following day, and he revoked Kent’s authority to file anything on behalf of PepsiCo.
Fourteen months later, Veneziano messaged Biener: “I suspect PepsiCo has received their first distribution, as Kent has received checks for its other clients. Please advise of the total received so that Kent can prepare and send an invoice for payment.”
“Kent did not do any significant work for PepsiCo … prior to my notice to you to ‘hold off.'” Biener replied ten days later. “Moreover, I presume Kent did not file a claim on our behalf (and therefore, did not perform its ‘duties’ under the agreement).”
Kent claims it has performed the terms of engagement, according to the complaint, and PepsiCo has repudiated the contract.
“Kent has been damaged in an amount in excess of $1 million,” the complaint states, indicating that PepsiCo received at least $5 millions in the settlement “with the precise amount to be determined at trial.”
Biener was away from the office and unable to reply to emails on Oct. 3, and the media relations department did not respond to an email asking for PepsiCo’s response to the allegations.
Kent is represented by Purchase attorney Joseph N. Paykin.
