Updated 3/17/10

On August 13, 2009, the court approved a final settlement valued at $1.5 million dollars for approximately 535 employees of Continental AFA. Outten & Golden filed suit against ContinentalAFA Dispensing Co., Harbinger Capital Partners Master Fund I, Ltd., and Harbinger Capital Partners Special Situations Fund, L.P., in the Bankruptcy Court for the Eastern District of Missouri to secure the rights of former ContinentalAFA employees in connection with the Worker Adjustment and Retraining Notification Act (the WARN Act). ContinentalAFA terminated approximately 535 employees at its facilities on or about July 24, 2008 without providing them with advance written notice. Generally, the WARN Act requires companies to provide their employees with 60 days written notice in advance of a mass layoff or plant closing. In the absence of such notice, employers may be liable to each affected employee for 60 days wages and benefits. ContinentalAFA terminated employees on July 24, 2008 without providing them with advance written notice.

The WARN settlement is to be funded from the sale of the estate's real estate and from proceeds recovered from litigation by the Trustee. To date, all but one piece of real estate has been sold by the Trustee. In terms of litigation, that process has begun and is estimated to conclude by December 2010. We will update the Class on the expected timing of distributions as information becomes known to us.

To contact us regarding this matter, please call 1-877 4-OUTTEN and ask for René Roupinian or email her.

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