SETTLEMENT APPROVED
On July 22, 2022, the Bankruptcy Court granted final approval of a $3.1 million WARN class action settlement. Distribution of the settlement to the WARN class members was contingent on the winding down of the Xceligent chapter 7 estate and approval by both the U.S. Trustee and the Bankruptcy Court of the chapter 7 trustee’s final report which occurred this year.
Accordingly, settlement checks were mailed by the settlement administrator to class members on April 10, 2024.
PREVIOUS UPDATES
On December 20, 2017, we filed suit against Xceligent, Inc., DMG Information, Inc., and DMGT, PLC (“Defendants”) seeking to recover up to 60 days wages and benefits for former employees under the Worker Adjustment and Retraining Notification (“WARN”) Act. We contended that Defendants ordered mass layoffs on or about December 14, 2017 without providing its employees with 60 days advance written notice.
On December 20, 2017, the same day that we filed our lawsuit, Xceligent, Inc. (“Xceligent”) filed for Chapter 7 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. Xceligent’s bankruptcy case is being administered by a Chapter 7 Trustee (the “Trustee”) appointed by the Court.
On July 31, 2018, the Court dismissed Defendants DMG Information Inc and DMGT, PLC from the lawsuit. Plaintiff’s case against Xceligent continued.
Plaintiff and the Trustee participated in a Mediation on December 16, 2020, to attempt to reach a settlement of the WARN class action without further litigation. The parties subsequently requested approval from the Bankruptcy Court for a settlement and requested that class members receive notice by mail of the settlement terms with an opportunity to opt-out of the class action or object to the settlement.
WARN ACT
Raisner Roupinian LLP will provide you with information regarding your rights in this WARN class action. The federal WARN Act requires companies with 100+ full-time employees to provide them with 60 days’ written notice in advance of a mass layoff or plant closing. Additionally, certain states also have WARN Acts.
Without the required notice, an employer may be liable for 60 days’ wages and benefits to each affected employee.
CONTACT US
Please contact Raisner Roupinian LLP with any questions regarding this matter. Or, to update your address, email address, and/or telephone number.