We filed suit against Fortunoff Holdings, LLC, Fortunoff Card Company, LLC, NRDC Equity Partners, LLC and NRDC Fund V, LLC (collectively Fortunoff) on February 12, 2009, seeking to recover 60 days wages and benefits for former employees under the Worker Adjustment and Retraining Notification (“WARN”) Act and the NY WARN Act. We contend Fortunoff ordered mass layoffs on or about February 12, 2009 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.
On October 1, 2009, the Court converted Fortunoff from a chapter 11 bankruptcy to chapter 7, and appointed a Trustee.
In 2011, we reached a WARN class settlement in the amount of $1.8 million with the Trustee. The Court approved the settlement at the Final Fairness hearing on December 16, 2011.
In February 2020, the Court held a hearing on the Trustee’s final report for the Fortunoff Estate, which reflected a total projected distribution of only 20% to creditors with administrative expense claims, including the WARN class (and zero distribution to lower priority creditors). Accordingly, the WARN class settlement of $1.8 million was reduced to $340,000, inclusive of attorneys’ fees, expenses, and service payments.
On August 14, 2020, the Trustee mailed the class members their pro rata share of the settlement, net of class counsel’s fees, service payments and applicable payroll withholdings.
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.