TRANSCARE CORPORATION WARN CASE UPDATE
UPDATE 01/10/2025
Unfortunately, there was a technical error when the settlement administrator mailed checks on December 31, 2024. Some checks went to class members’ old addresses. If this problem has affected you, please submit a contact us form. We are working diligently to correct this error and, where necessary, to re-issue checks.
If you have moved, please use our contact us form to update your current address as soon as possible.
PREVIOUS UPDATES
WARN CHECKS MAILED | PTO CASE CONTINUES
On December 31, 2024, the settlement administrator mailed WARN settlement checks to class members. We will continue to pursue recovery of the class’s unpaid wages and paid time off. See updates here on those developments.
SETTLEMENT APPROVED
On September 5th, 2024, the bankruptcy court approved a $17.5 Million settlement resolving the WARN Act claims of the certified class. Essentially, this approval means that settlement checks will be sent to class members.
We sent an email update to our class members on August 14, 2024. To report notice of a September 5 hearing. 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.
COURT GRANTS APPROVAL
The Bankruptcy Court granted final approval on June 8, 2021, of the Class’ WARN and wage settlement with the TransCare Chapter 7 Trustee. Eventually, 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. This preserves funds in the TransCare estate for the benefit of creditors, including the Class.
See an update here regarding the trial date for the Class’s WARN claims against the Non-Debtor Patriarch Partner entities.
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.
COURT GRANTS MOTION
In May 2020, the Court granted our motion for summary judgment holding Lynn Tilton liable to pay the final wages of the 1,700 class members. Additionally, the Court 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.
WARN CLASS ACTION SUIT FILED
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. This is the court where TransCare filed for chapter 7 protection.
Subsequently, in October 2016 the Bankruptcy Court certified the case as a class action. The settlement administrator mailed notice of the certification 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
Please contact Raisner Roupinian LLP with questions regarding this matter or to update your address, email address, and/or telephone number.