Lexington, KY, August 14, 2025
News Summary
Brad Pagel, owner of Lexington Blue roofing company, has filed a motion to dismiss a lawsuit from Kentucky’s Attorney General. The lawsuit alleges violations of the Kentucky Consumer Protection Act, claiming the company took large deposits for roofing work that was never completed. After closing in April and filing for Chapter 11 bankruptcy, Lexington Blue reportedly owes over $3.2 million, with numerous contracts unfulfilled. A court hearing on the motion is set for September 5.
Lexington
Brad Pagel, the owner of Lexington Blue roofing company, has filed a motion to dismiss a lawsuit initiated by the Kentucky Attorney General, Russell Coleman. The lawsuit alleges that Pagel and his associates violated the Kentucky Consumer Protection Act and unjust enrichment statutes. The motion to dismiss, submitted through attorney Adrienne Southworth, specifically seeks to dismiss claims against Pagel but does not extend the same consideration to his wife, Courtney, or other former employees involved in the case.
The lawsuit outlines serious allegations against the roofing company, claiming that Pagel and his team accepted substantial deposits from hundreds of homeowners for roofing repairs that ultimately went unfulfilled. This situation escalated when Lexington Blue closed its doors in April 2023 and later filed for Chapter 11 bankruptcy in June, reporting over $3.2 million in debts owed to former customers and employees. Bankruptcy filings reflect that at least 263 roofing contracts were either partially paid but not completed or poorly managed, leading to widespread dissatisfaction among clients.
In the legal suit, the Attorney General’s office is looking to recover possibly millions in misappropriated funds along with additional damages and fines against the roofing company. The motion filed by Pagel contends that the Attorney General’s complaint does not detail any specific wrongful acts committed by him personally. Furthermore, the filings fail to name any distinct interactions involving Pagel with either consumers or employees.
A hearing regarding the motion to dismiss is set for September 5, before Fayette Circuit Judge Diane Minnifield. Compounding the challenge, Pagel testified under oath in his bankruptcy case just one day after the dismissal motion, placing the responsibility for the company’s financial collapse on the shoulders of former employees.
Previously, Lexington Blue had an impressive track record, completing over 7,500 projects by 2021. However, the company began to face escalating challenges primarily due to high-interest loans coupled with severe management issues. By 2025, customer complaints had overwhelmed the company’s service operations, prompting layoffs and ultimately leading to the company’s downfall.
Further complicating matters, Lexington Blue’s bankruptcy filings reveal that the company owes more than $3.2 million to in excess of 200 creditors, yet lists less than $50,000 in assets. Additionally, multiple lawsuits have been lodged against the company, including a class action lawsuit targeting the firm for failure to deliver paid services. Allegations also suggest Pagel may have diverted funds for personal use, exacerbating financial difficulties. These claims have spurred investigations by the Kentucky Attorney General’s office, leading to calls for accountability regarding predatory business practices.
Background of Lexington Blue
Lexington Blue was once a bustling roofing business, but financial strain and operational mismanagement have severely impacted its reputation and reliability. The company’s downslide can be traced back to high-interest loans and overwhelmed service capabilities, where customer dissatisfaction has only compounded its troubles.
Summary of Key Events
- Brad Pagel filed a motion to dismiss a lawsuit from the Kentucky Attorney General.
- The company is accused of taking large deposits for unfinished roofing projects.
- Lexington Blue closed in April 2023, filing for Chapter 11 bankruptcy in June.
- Company debts exceed $3.2 million, with over 263 contracts uncompleted.
- A hearing is scheduled for September 5 on the motion to dismiss.
Frequently Asked Questions
What are the main allegations against Brad Pagel and Lexington Blue?
They are accused of violating the Kentucky Consumer Protection Act by accepting large deposits for roofing repairs that were never completed.
What is the status of the lawsuit?
The lawsuit is currently pending, with a motion to dismiss filed by Pagel scheduled for a hearing on September 5.
What financial situation does Lexington Blue face?
Lexington Blue filed for Chapter 11 bankruptcy with debts totaling over $3.2 million, having less than $50,000 in assets.
Are other employees involved in the lawsuit?
Yes, the motion to dismiss does not cover allegations against Pagel’s wife, Courtney, or other former employees who may be implicated.
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Additional Resources
- Kentucky.com: Lexington Blue Roofing Company Lawsuit
- LEX18: Lexington Blue Files for Chapter 11 Bankruptcy
- WDRB: Former Employee Speaks Out
- Kentucky.com: Update on Lexington Blue Roofer’s Challenges
- LEX18: Class Action Lawsuit Filed Against Lexington Blue
- Wikipedia: Kentucky
- Google Search: Kentucky Consumer Protection Act
- Google Scholar: Kentucky Roofing Company Bankruptcy
- Encyclopedia Britannica: Bankruptcy
- Google News: Lexington Blue Roofing
Author: STAFF HERE LEXINGTON KY STAFF
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