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Karklins and HIA Velo settle suit

LITTLE ROCK, Ark. (BRAIN) — Tony Karklins and HIA Velo have settled the lawsuit Karklins had filed against the company last fall. 


Karklins was founder of the company, which manufactures the Allied Cycle Works frames in Arkansas. He left the company in October 2018 and filed suit against it in November, charging that HIA breached his employment agreement by dismissing him for cause when no cause existed, did not pay him for unused paid time off, and had categorized his dismissal as “for cause” to avoid paying his full severance salary, among other complaints.

Pulaski County Circuit Court documents show the case was dismissed on July 26.

“After an extended period of negotiation, we have come to a mutually acceptable resolution,” Karklins told BRAIN in an email. “I continue to be invested in the business but am starting some new ventures which I will be launching in the coming weeks / months.”

Sam Pickman, the CEO of Allied, said the company would not have a comment. “Thanks for reaching out but we do not comment on personnel or legal matters,” Pickman said in an email. 

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