A class action lawsuit has been filed in Jefferson County against Lexington Blue, Inc., and its owner, Bradley Pagel Jr., following an investigation triggered by customer and employee complaints.
The lawsuit, which was filed by the legal team representing two individuals, claims that the roofing company accepted payments through contracts but failed to deliver any meaningful service. Additionally, it alleges that the company continued to take on new contracts without fulfilling the obligations of previous ones.
According to the lawsuit, the two individuals entered into a contract with Lexington Blue in November 2024, agreeing to pay $8,080 for roofing services.
The agreement stated that the insurance company would cover the cost of the roofing, but the plaintiffs were required to pay the full amount upfront.
The plaintiffs filed an insurance claim and paid the full amount, with the expectation that work would begin within four to six weeks after the contract was completed and payment was received. However, no work was performed, despite the plaintiffs paying the amount in full and repeatedly requesting updates.
The lawsuit includes several claims, including breach of contract, negligent misrepresentation, violation of the Kentucky Consumer Protection Act, unjust enrichment, an equitable action to pierce the corporate veil, violation of Kentucky’s voidable transfer act, and punitive damages.
The original story reports that Lexington Blue, a roofing company servicing Lexington, Louisville, and Cincinnati, ceased its operations over the weekend following a series of complaints and accusations that reached the Attorney General’s office.
The company, which had been in business for ten years, had built a reputation for excellence, integrity, and community care. However, one former employee, David Hodgson, told LEX 18 that his experience with the company was filled with red flags.
Hodgson, who began working for the company in June 2024, recalled multiple instances of bounced checks and unpaid bills. “We probably had three or four weeks in a row of bounced checks,” he said.
He also described how the company was months behind on bills and how, on his first day after being promoted, he received a company truck and a gas card, only to find that the card didn’t work due to an unpaid bill.
As financial troubles deepened, customers began to experience delays in service, unfulfilled contracts, and lack of communication.
According to the Better Business Bureau, Lexington Blue had a history of complaints related to communication, service delays, and refund issues, along with numerous negative reviews on social media. Frustrated by the company’s treatment of customers, Hodgson quit his job in October 2024, just months after starting.
In March 2025, the Attorney General’s office issued a subpoena to Lexington Blue, demanding that the company provide business records, emails, texts, and customer files within 20 days. Lexington Blue responded by requesting an extension and modifications to the demands.
Just weeks later, the company announced its closure online, citing defaults on credit lines and loans. In the statement, the company claimed that internal disruptions and negative press contributed to its closure.
Hodgson, who had predicted the company’s demise, told LEX 18, “When I quit, I told everybody I said that by spring, Lexington Blue won’t be a business, I promise you that. And it’s April, it’s still spring, so I mean I’d say I was right.”
Lexington Blue has since transferred its outstanding projects to Skyline GC LLC.