TransCare Corporation

UPDATE 06/11/2021

The Bankruptcy Court granted final approval on June 8, 2021, of the Class’ WARN and wage settlement with the TransCare Chapter 7 Trustee. The dollar amount of the settlement will be determined at trial against the Non-Debtor Defendants (the Patriarch Partners entities). The Bankruptcy Court has not yet set a trial date.   

The settlement with the Chapter 7 Trustee removes the need for the Class to establish liability at trial against the Debtors, thereby preserving funds in the TransCare estate for the benefit of creditors, including the Class.   

When a trial date has been set with respect to the Class’ WARN claims against the Non-Debtor Patriarch Partner entities, or there are other significant developments in the case, we will post it here.  

PREVIOUS UPDATES

Raisner Roupinian LLP recently reached a settlement of the class’ WARN claim with the Chapter 7 trustee.   If the bankruptcy court, vis-à-vis Judge Jones who replaced the retired Judge Bernstein, preliminarily approves the settlement at a hearing scheduled on March 25, 2021, notice of the settlement terms will be mailed to the members of the class in April.    

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.

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 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.

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