ITT Educational Services, Inc. – $10 Million Settlement, UPDATE 06/21/2022

The parties reached a proposed $10,000,000 settlement of the WARN class action subject to preliminary and final approval by the Bankruptcy Court.  On February 23, 2022, the Court granted preliminary approval and notice of the terms of the settlement was mailed to all class members on March 11, 2022.  On April 27, 2022, the Bankruptcy Court granted final approval.

Settlement checks were mailed to eligible class members on June 21, 2022.

If you have moved and not updated your mailing address with us, please do so as soon as possible by completing the contact us form.

PREVIOUS UPDATES

On September 16, 2016, we filed our WARN suit in the Bankruptcy Court for the Southern District of Indiana, against ITT Educational Services, Inc. (“ITT”), seeking to recover 60 days wages and benefits for former employees under the federal and California Worker Adjustment and Retraining Notification (“WARN”) Acts. We contended that ITT ordered mass layoffs then, without providing its employees with advance written notice as required by the WARN Acts.

In January 2017, the Bankruptcy Court appointed us interim class counsel to represent the WARN Act claimants. The parties engaged in limited discovery and asked the Bankruptcy Court to certify the case as a class action.  

The Bankruptcy Court certified both a federal and California WARN class on June 8, 2020, covering all ITT employees terminated on or about September 6, 2016, and appointed Raisner Roupinian LLP Class Counsel. Notice of the class action was mailed to the members of the class by June 30, 2020. 

In 2020, the parties agreed to participate in a formal settlement process called “mediation,” in an effort to reach a consensual resolution of the WARN claims on behalf of the class.  Mediation, which occurred on November 2, 2021.  The mediation was successful in that a settlement was reached, causing the parties to seek Court approval, including permission of Class Counsel to provide notice by mail of the terms of the proposed settlement to the members of the class.

As a reminder, only employees who worked at ITT sites covered by the federal or California WARN Acts are eligible to share in the settlement. 

The covered sites are listed below:

Fort Lauderdale, FLOrange, CA
Lake Mary, FLNational City, CA
Mobile, ALSan Bernardino, CA
Philadelphia, PASylmar, CA
Portland, ORTorrance, CA
Richardson, TXClovis, CA
Springfield, VACorona, CA
Tampa, FLLathrop, CA
Norfolk, VAOxnard, CA
Houston North, TXSan Dimas, CA
Houston West, TXRancho Cordova, CA
Jacksonville, FL
HQ Building, IN
Online,  IN

WARN ACT – CONTACT US

If this mass layoff affected you, Raisner Roupinian LLP can provide you with updated information regarding your rights in this case. 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, email address, and/or telephone number, please contact us.

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