A year after Toys R Us closed, tens of thousands of laid-off workers are getting a portion of the severance promised and then rescinded as the retailer unraveled.
While workers are getting $2 million, a fraction of the $56 million in fees awarded to Kirkland & Ellis, the law firm representing Toys R Us, the decision is still a victory of sorts. That's because pensions and severance payments are labeled as unsecured debt when a company files Chapter 11, making them low priority and less likely to be paid.
A bankruptcy judge on Thursday approved the settlement to a class-action lawsuit filed...
One year after Toys R Us shut its doors, a group of workers who lost their jobs are set to receive a $2 million severance settlement.
Judge Keith L. Phillips of the Eastern District of Virginia on Thursday approved the settlement for 33,000 employees who were laid off after the toy company filed for bankruptcy last year, a group representing the workers announced. The settlement was the result of a class action claim filed by the workers last year.
The group was led by Ann Marie Reinhart Smith, a 30-year Toys R Us employee who filed the claim on behalf of all employees laid off without...
Tammy Heeter woke up Friday as a loyal former Wood-Mode employee and ended the day feeling “betrayed.”
“We were lied to,” she said after receiving an automated text message notifying her and the 937 other laid off workers that medical, dental, vision and other insurance coverage was ending as of midnight Friday.
It was a stark change from earlier in the day when Heeter picked up her final paycheck from Wood-Mode and joined more than 200 other displaced employees at the VFW in Selinsgrove to hear from a New York City attorney about a pending class-action lawsuit against the company.
Remnants of bankrupt electric car maker Fisker Automotive kicked up fresh sparks Wednesday, when a Delaware judge said the company and laid-off workers should consider dates for a trial in a dispute over first-in-line payment claims.
U.S. Bankruptcy Judge Kevin Gross made the point after arguments on a class of workers’ motion for summary judgement for their claim to first priority rights to a $1.9 million estate reserve to pay Worker Adjustment and Retraining Notification Act compensation.
“This case has been pending for 5½ years. I realize it has been a contentious process, but I’m hoping...
Former employees of recently shuttered Live Well Financial Inc. opened a proposed class Worker Adjustment and Retraining Notification Act complaint Wednesday in the U.S. District Court for Delaware, citing no-notice, mass layoffs in California and Virginia.
Lead plaintiff Monica Williams, a loan account manager at the company's Richmond, Virginia, headquarters, said she and hundreds of other employees in Virginia and San Diego, California, were fired without warning on May 3.
The two-count lawsuit alleged violations of both the federal WARN Act and its California state counterpart. Both...
Bankrupt advertising tech firm Sizmek Inc. has been hit by a proposed class action complaint in New York bankruptcy court claiming it laid off dozens of employees from its Manhattan office without warning in January.
Ex-Sizmek employee Jared McKinley Kreiner claimed in a complaint filed Thursday that he and at least 50 others were laid off by the firm on Jan. 31, without the 60-day warning required by the federal Worker Adjustment and Retraining Notification Act.
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In the adversary action, Kreiner, who said he was employed at Sizmek...
In a new class-action lawsuit, former Munchery facilities worker Joshua Philips is claiming the startup owes him and 250 other employees 60 days’ wages, citing The Worker Adjustment and Retraining Notification Act, a U.S. labor law that requires employers with an excess of 100 employees to give notice 60 days ahead of mass layoffs.
Munchery, a prepared meal delivery company headquartered in San Francisco, announced in an email to customers on January 21 that it would cease operations, effectively immediately. The abrupt shutdown not only came as a surprise to Munchery’s community of customers...
Law requires California utilities give advance notice of a bankruptcy filing
PG&E Corp. was prompted to disclose its intent to file for chapter 11 by a new California law that includes a novel provision requiring utilities give employees a 15-day heads-up before seeking protection and freezes for at least six months the utility’s ability to potentially layoff workers after filing for bankruptcy.
The law, which took effect Jan. 1, is intended to provide employees, creditors and state regulators “the maximum amount of transparency” about a coming bankruptcy, said Paul Payne, spokesman for...
A former employee of family-run turkey processor Zacky Farms has filed a lawsuit in federal court, claiming the company failed to give workers the required notice of layoffs prior to announcing it was closing.
Meanwhile, Zacky officials have said they tried to provide the workers as much notice as possible before deciding to shut down two weeks ago.
News of the lawsuit comes amid an announcement Wednesday the companyfiled for Chapter 11 bankruptcy.
In the lawsuit, filed Tuesday in U.S. District Court in Fresno, laid off employee Karen Vance said the company violated the California Worker...