4th Circuit Reverses Award; Deal With Unions Does Not Favor Debtor Company

RICHMOND, Va. - A panel of the Fourth Circuit U.S. Court of Appeals on April 5 reversed and remanded a district court's ruling that had affirmed an arbitrators' award to a debtor company after two unions sued the company seeking payment for vacation benefits accrued prior to the plant's closing...

Kodak Seeks Extension Of Stay To Cover Underlying Discrimination Lawsuit

NEW YORK - Bankrupt Eastman Kodak Co. on May 18 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York contending that the automatic stay should be extended to cover a lawsuit filed by a former employee who claims that he was the victim of racial discrimination (In Re: Eastman...

Former Dewey Partner Sues Bankrupt Firm Alleging Fraud, Misrepresentation

SAN FRANCISCO - A former partner with bankrupt law firm Dewey & Leboeuf on June 12 filed a lawsuit in a California state court against principals in the firm, seeking damages for alleged fraud and contending that the principals deliberately misrepresented the firm's financial condition to attract...

Pilots' Class Action Against Bankrupt Global Aviation Alleges Wrongful Termination

BROOKLYN, N.Y. - A group of former pilots for World Airways Inc., a division of bankrupt Global Aviation Holdings Inc., on July 31 filed a putative class action contending that the mass layoffs the company instituted after it filed its bankruptcy petition violated federal employment law (Daniel Schroeder...

Bankrupt Hostess CEO: Deal With Union Close, May Pave Way Out Of Chapter 11

NEW YORK - The CEO of bankrupt Hostess Brands Inc. on Aug. 20 sent a letter to employees indicating that the company had reached a breakthrough with its largest union regarding modification to the collective bargaining agreement (CBA), which may help pave the way for Hostess to emerge from bankruptcy...

Dewey & LeBoeuf: Claims Of Pension Benefit Guaranty Corp. Not Valid

NEW YORK - Attorneys for bankrupt law firm Dewey & LeBoeuf on Sept. 27 sent a letter to the bankruptcy judge presiding over its Chapter 11 proceeding, contending that claims asserted by the Pension Benefit Guaranty Corp. (PBGC) do not meet the criteria set forth in the bankruptcy code for fixed or...

Putative Class Sues Hostess, Alleges Jobs Terminated Without Cause

NEW YORK - A putative class of former employees of bankrupt Hostess Brands Inc. on Nov. 21 sued the company in the U.S. Bankruptcy Court for the Southern District of New York, alleging violations of the Worker Adjustment and Retraining Notification Act (WARN), 29 U.S.C.S. § 2101 . (Mark Popovich...

Government Pension Agency Sues Bankrupt RG Steel Parent Renco Group, Alleges Fraud

NEW YORK - The Pension Benefit Guaranty Corp. (PBGC) sued The Renco Group Inc. in the U.S. District Court for the Southern District of New York on Jan. 28, alleging fraud and negligent misrepresentation regarding a deal it consummated just before the Chapter 11 bankruptcy filing of its subsidiary RG...

5th Circuit: Flexible Flyer Did Not Violate WARN Act In Filing For Bankruptcy

NEW ORLEANS - A panel of the Fifth Circuit U.S. Court of Appeals on Feb. 11 affirmed a bankruptcy court's ruling that a company did not violate federal employment law when it suddenly filed for bankruptcy, closed its plan and conducted mass layoffs because those developments were not foreseeable...

Bankruptcy Judge: WARN Claim Against Dewey & LeBoeuf May Proceed As Class Action

NEW YORK - A federal bankruptcy judge on Feb. 11 ruled that a putative class action asserting claims under the Worker Adjustment and Renotification (WARN) Act against bankrupt law firm Dewey & LeBoeuf could proceed (Vittoria Conn v. Dewey & LeBoeuf $(In Re: Dewey & LeBoeuf$), No. 12-12321...

San Bernardino Wants To Reject Collective Bargaining Deals With Some Unions

RIVERSIDE, Calif. - The bankrupt City of San Bernardino, Calif., on March 4 moved in the U.S. Bankruptcy Court for the Central District of California for approval to reject collective bargaining agreements with its unionized employees, including police officers and firefighters (In Re: City of San Bernardino...

Fiduciary Of Dewey & LeBoeuf 401(k) Plan: More Than $7.47M Claim Was Not Waived

NEW YORK - The fiduciary of the 401(k) plan of bankrupt law firm Dewey & LeBoeuf on Aug. 30 filed a brief supporting its proof of claim valued at more than $7.47 million on grounds that it has not waived its claim and no other entity has the authority to do so (In Re: Dewey & LeBoeuf, No. 12...