On October 15, 2008, Outten & Golden filed suit against Archway Cookies LLC, Mother's Cake & Cookie Co., Archway & Mother's Cookie Co., Inc., and Dough Co., seeking to recover 60 days wages and benefits for former employees of Archway Cookies under the Worker Adjustment and Retraining Notification Act (the WARN Act) and California Labor Code § 1400. On or about October 6, 2008, we contend, Archway Cookies terminated the employment of all of its employees as part of a mass layoff or a plant closing as defined by 29 U.S.C. § 2101(a)(2),(3). The case is pending in the U. S. Bankruptcy Court for the District of Delaware. Generally, the WARN Act requires companies to provide their employees with 60 days written notice in advance of a mass layoff or plant closing. In the absence of such notice, employers may be liable to each affected employee for 60 days wages and benefits.
On August 6, 2009, Outten & Golden filed suit against Catterton Partners V, L.P., Catterton Partners V Offshore, L.P., Catterton Coinvest I, LLC and Insight Holdings in United States District Court for the District of Connecticut under the WARN Act seeking to recover 60 days wages and benefits for former employees of Archway Cookies.
On April 17, 2012, Delaware Bankruptcy Judge Sontchi granted final approval of the WARN class action $4 Million settlement and entered the Final Order. The Connecticut action was subsequently dismissed. The settlement will become non-appealable and effective on May 29, 2012. The settlement will be distributed to the class in two installments. An initial distribution of $3 Million dollars, less attorneys' fees and expenses, was mailed to the Class by the settlement administrator on July 9, 2012. The second and FINAL distribution of $1 Million dollars, less attorneys' fees, was mailed to the Class by the settlement administrator on December 31, 2014. Any distribution checks that remain uncashed after 180 days from the second/final settlement payment shall be paid to the Clerk of the Bankruptcy Court in the name of the Plaintiff Class member(s).
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(*Prior results do not guarantee a similar outcome.)