SETTLEMENT APPROVED
We filed suit against Corinthian Colleges, Inc (“Corinthian”) on May 5, 2015. We sought to recover 60 days wages and benefits for former employees under the federal and California Worker Adjustment and Retraining Notification (“WARN”) Act. We contend Corinthian ordered mass layoffs on or about April 26, 2015, without providing its employees with advance written notice.
Because the estate earmarked no money for Corinthians’ employees, we filed an Objection to the Chapter 11 Plan. In August 2015, as a result of our Objection, we achieved not only a settlement amount of $900,000 for the employees, but the crucial first-in-line position, ahead of all of Corinthian’s unsecured creditors. Over the past five years, we were told Corinthian did not anticipate having enough money to pay our claim in full, no less anyone else’s claim at all.
On September 24, 2019, Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware signed an order certifying the class and approving the settlement of this action in the amount of $900,000. More recently we learned the Corinthian Trust had the funds to pay the full settlement amount. Given its very limited resources and the fact that, at 1,700 employees, our class size is quite large, the size of each settlement check will be relatively modest. Net of fees and expenses, full-time employees will receive $363 and part-time employees will receive $142.
The settlement administrator mailed individual checks to class members on May 1, 2020. Class Members had 180 days from the date of issuance to deposit their checks. Any uncashed checks reverted to the Debtors’ estates.
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.