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Fortunoff – $340,000 Settlement

UPDATE 6/23/2020

On February 12, 2009, we filed suit against Fortunoff Holdings, LLC, Fortunoff Card Company, LLC, NRDC Equity Partners, LLC and NRDC Fund V, LLC, 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 the case to chapter 7 and a Trustee was appointed. A class settlement was reached with the Trustee for the estates of Fortunoff Holdings, LLC and Fortunoff Card Company, LLC. On December 16, 2011, the Court held a Final Fairness Hearing and approved the final settlement.

The Fortunoff Bankruptcy is winding down and will close soon. As part of that process, funds held by the Fortunoff Estate will be distributed to creditors, including the members of the WARN class.

On June 15, 2020, the Trustee informed Class Counsel that the mailing of class members’ settlement checks, net of class counsel’s fees, service payments and applicable withholding, is on hold pending the filing and approval of an amended final report by the Trustee. When we have more information, including the date of distribution, we will provide it here.

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.

If you have any questions regarding this matter or to update your address and telephone number, please contact us.