Corinthian Colleges, Inc. – $900,000 Settlement
On May 5, 2015, we filed suit against Corinthian Colleges, Inc (“Corinthian”), seeking 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.
Settlement checks were mailed by the Corinthian Estate on May 1, 2020. Class Members will have 180 days from the date of issuance to deposit their checks. Any checks that are not deposited, endorsed or negotiated within 180 days of their initial issuance will revert to the Debtors’ estates.
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