Daimler Truck North America has filed a lawsuit against a former employee and his wife, accusing them of embezzling nearly $3.8 million from the commercial truck manufacturer over a five year period.
The lawsuit, filed Oct. 12 in Washington County Circuit Court in Oregon, names former Daimler employee Terry S. Watson and his wife, Krystal Watson, as defendants. The case, No. 26CV57242, remains open, according to court records reviewed by FreightWaves.
Daimler is seeking approximately $6.6 million in damages in connection with the alleged scheme, according to The Oregonian/OregonLive.
Watson worked in Daimler’s test fleet operations in Portland from 2016 until November 2025, when he was terminated after the company discovered suspicious financial activity, according to published reports.
The company alleges Watson used corporate credit cards and falsified expense reports to pay for personal expenses, including vacations to Europe, Las Vegas and Legoland, as well as landscaping, household services, child care and restaurant deliveries.
The lawsuit also accuses Watson of using company fuel cards for personal purchases and directing contractors to bill Daimler for construction and landscaping work performed at his Hillsboro, Oregon, residence.
Krystal Watson allegedly participated in the scheme by using company credit cards for personal purchases and providing receipts to her husband that were used in falsified expense reports, according to KOIN’s reporting on the lawsuit.
FreightWaves has requested a copy of the original complaint from Washington County Circuit Court. The allegations described in published reports have not been independently verified against the complaint by FreightWaves.
Daimler Truck North America, headquartered in Portland, manufactures commercial vehicles under the Freightliner, Western Star and Thomas Built Buses brands, among others.
Why it matters: The Daimler Truck North America lawsuit raises questions about internal financial controls at one of North America’s largest commercial truck manufacturers after an alleged five-year misuse of corporate funds.
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