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TransCare Corporation

UPDATE 5/15/2020

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, where TransCare filed for chapter 7 protection.

In October 2016 the Bankruptcy Court certified the case as a class action and notice was mailed to the members of the class. The parties have since completed the discovery phase of the litigation and filed cross-motions for summary judgment.

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.

In May 2020, the Court granted our motion for summary judgment holding Lynn Tilton liable to pay the final wages of the I,700 class members. The Court also 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.

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