UPDATE 09/12/2024
On September 5th, 2024, the bankruptcy court approved a $17.5 Million settlement resolving the WARN Act claims of the certified class. This approval means that settlement checks will be sent to class members. We do not know when checks will be mailed, but estimate that it will be before the end of the year. When we have the date of mailing, we will post it here.
We continue to pursue recovery of the class’s unpaid wages and paid time off and will provide updates on those developments here.
If you have moved, please use our contact us form to update your current address as soon as possible.
PREVIOUS UPDATES
We sent an email update to our class members on August 14, 2024, regarding a notice of a September 5 hearing which many of you recently received. If you completed our retainer agreement or have your email address on file with us and did not receive this email update, please check your spam folder, or contact us.
When we have an update on the outcome of the hearing or any other aspects of the class action, we will post it here.
The Bankruptcy Court granted final approval on June 8, 2021, of the Class’ WARN and wage settlement with the TransCare Chapter 7 Trustee. The dollar amount of the settlement will be determined at trial against the Non-Debtor Defendants (the Patriarch Partners entities). The Bankruptcy Court has not yet set a trial date.
The settlement with the Chapter 7 Trustee removes the need for the Class to establish liability at trial against the Debtors, thereby preserving funds in the TransCare estate for the benefit of creditors, including the Class.
When a trial date has been set with respect to the Class’ WARN claims against the Non-Debtor Patriarch Partner entities, or there are other significant developments in the case, we will post it here.
Raisner Roupinian LLP recently reached a settlement of the class’ WARN claim with the Chapter 7 trustee. If the bankruptcy court, vis-à-vis Judge Jones who replaced the retired Judge Bernstein, preliminarily approves the settlement at a hearing scheduled on March 25, 2021, notice of the settlement terms will be mailed to the members of the class in April.
In May 2020, the Court granted our motion for summary judgment holding Lynn Tilton liable to pay the final wages of the I,700 class members. The Court also ruled on the Patriarch Partners entities’ request to be shielded from WARN liability. In denying their request, the Court found sufficient evidence warranting a trial to determine whether the Patriarch Partners entities should be liable for the WARN claims of all the class members.
In January 2020, the Court granted our motion to strike Transcare’s defenses against the WARN claims of our class members who worked in Transcare’s NYC EMS/ambulance and Maryland ambulance divisions. The WARN claims of those who worked in the NYC paratransit, Hudson Valley and Pittsburgh divisions are still subject to defenses that Transcare will have the burden to prove at trial.
In March 2016, we filed suit against Debtors TransCare Corporation, et al. and non-debtors Lynn Tilton and her Patriarch Partners entities (collectively “Defendants”) seeking to recover 60 days wages and benefits under the federal and New York WARN Acts, in addition to unpaid final wages. We contend the Defendants ordered mass layoffs beginning on or about February 24, 2016, without providing its employees with advance written notice. The case is pending in the United States Bankruptcy Court for the Southern District of New York, where TransCare filed for chapter 7 protection.
In October 2016 the Bankruptcy Court certified the case as a class action and notice was mailed to the members of the class. The parties have since completed the discovery phase of the litigation and filed cross-motions for summary judgment.
CONTACT US
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