Aerotek Filing Big Debt Collection Lawsuits

Is it the economy or just business as usual?

As one of the biggest players in the staffing industry, it is not surprising that Aerotek spends more time in court than most staffing firms. Lately, the firm has been chasing clients for some pretty large unpaid bills. This may be a reflection of business conditions, or it could just be a generous credit policy. But there does seem to be a theme here. Here are cases filed in the last five months, with claims totaling $9,927,667:

Client: Montaplast
Industry: auto parts manufacturing
Debt: $1,325,164.02
Court: United States District Court, Kentucky

Client: Peak Mechanical Solutions
Industry: Air Conditioning, heat and plumbing contractor
Debt: $380,401.46
Court: State of New York, Kings County

Client: ML Builders, LLC
Industry: general contractor
Debt: $382,021.66
Court: United States District Court, South Carolina

Client: Power Industries, LLC
Industry: electrical contractor
Debt: $412,000
Court: United States District Court, Connecticut

Client: Bunting Graphics, Inc. d/b/a Bunting Architectural Metals
Industry: architectural signage and ornamental metals
Debt: $128,081.79
Court: Pennsylvania, Allegheny County

Client: Babcock & Wilcox Solar Energy, Inc. (formerly known as Fosler Construction Company, Inc.)
Industry: solar energy contractor
Debt: $7,300,000
United States District Court, Maryland

If you are wondering how a staffing company can be owed $7,300,000 by a single client, here’s how:

Pursuant to the Agreement, Aerotek and B&W Solar agreed that B&W Solar would pay Aerotek for the contract employees based on timesheets and invoices that Aerotek submitted to B&W Solar on a weekly basis.

Pursuant to the Agreement, Aerotek placed contract employees with B&W Solar for at least four different projects located in New York and Ohio).

B&W contracted with Aerotek for employees to do work on the project, including installing Piles, Racking and Modules.

Aerotek submitted timesheets and invoices to B&W Solar for the work performed by the contract employees, including installing Piles, Racking and Modules, and based upon these timesheets and invoices generated a Statement of Account reflecting the balance owed.

One auto manufacturer and five construction-related companies make up our list. SLN says: watch out for construction contractors. But you should know that already.