Raisner Roupinian LLP filed a class action complaint on June 6, 2023, against Bitwise Industries, Inc., Alphaworks Technologies, LLC, Jake Soberal, and Irma Olguin, Jr. (“Defendants”). We sought to recover 60 days’ wages and benefits for terminated employees under the federal Worker Adjustment and Retraining Notification Act (“WARN Act”) and the California Labor Code (“CAL-WARN Act”). Additionally, we sought unpaid wages, vacation pay, and penalties under applicable state wage laws.
We contended the Defendants ordered mass layoffs, plant closings, or termination of a covered establishment on or about May 29, 2023, and within 30 days of that date. They did so without providing 60 days’ advance written notice as required by the WARN Act and the CAL-WARN Act. Furthermore, we contended that Defendants failed to pay employees their wages in the weeks leading up to their termination.
Subsequently, the case moved courts. From the United States District Court for the Eastern District of California to the United States Bankruptcy Court for the District of Delaware.
PRELIMINARY AND FINAL APPROVAL
On July 30, 2024, the Delaware Bankruptcy Court granted preliminary approval of a $20 million global settlement with the owners of Bitwise. $6 million of which went to settle the WARN class action. Accordingly, the settlement administrator mailed notice of the terms of the settlement to all class members on September 5, 2024. The court granted final approval of the settlement on November 20, 2024.
The settlement class is defined as former employees who suffered an employment loss on or within thirty days of May 29, 2023, as part of a plant closing or mass layoff or as the reasonably foreseeable consequence of a plant closing.
The settlement administrator sent individual settlement checks by first class mail to class members on May 30, 2025. Class members must have cashed or deposited their checks within 180 days–by November 26, 2025.
Subsequent to this 180 days, remaining money from uncashed checks must be donated to a non-profit organization, according to the terms of the court approved settlement agreement,
Potentially, a second round of settlement checks may be sent once the chapter 7 bankruptcy concludes. Sometime in 2027. We do not yet know the amount or specific timing of that second payment. We will post an update here when more information is available.
THE WARN ACT
Raisner Roupinian LLP will provide you with information regarding your rights in this case. For example, the federal WARN Act requires companies to provide their employees with 60 days’ written notice in advance of a mass layoff or plant closing. Certain states also have WARN Act laws.
Without the required notice, employers 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.