A group of former Lehman Brothers Holdings Inc. employees is suing the
company, claiming it violated federal law by stiffing them on their 60 days of
severance pay.
The lead plaintiff is an information technology staffer, who filed a
complaint this week seeking class-action certification and more than $5 million
in back pay in U.S. Bankruptcy Court in Manhattan. The former employees are
being represented by class-action powerhouse Outten & Golden.
The ex-Lehman employees claim they were terminated just days before the
investment firm filed for bankruptcy on September 15, which was a Monday.
Computer programmer Miron Berenshteyn and dozens of his colleagues were let
go on the prior Thursday, according to the filing, making them eligible for 60
days of pay and benefits under the federal Worker Adjustment and Retraining
Notification Act. The employees allege the payments abruptly stopped after just
three weeks.
“These are unpaid wages we’re talking about here,” said Jack Raisner, partner
at Outten & Golden. “When employees lose their jobs as part of a mass
layoff, they are due that money. It’s a priority.”
Outten & Golden last hit the headlines in 2004 when it represented an
ex-Morgan Stanley employee in a sexual-discrimination suit against the bank. The
case was settled for $54 million, one of the highest payments logged in a
discrimination case.
According to news reports, nearly 1,000 employees were terminated in the days
leading up to the bankruptcy, and Raisner says all could qualify for inclusion
in the class.
The group is suing for 60 days of back pay, one week of severance for every
year at the company, and health benefits.
Because Lehman is no longer an operating company, the complaint had to be
filed in bankruptcy court, where hundreds of other unsecured creditors are
hustling for their share of the $613 billion bankruptcy.
If the judge finds that Lehman did violate the Worker Adjustment and
Retraining Notification Act, then the unpaid wage claims would get priority
status in the line of creditors.
Lawyers at Wiel Gotshal & Manges, the firm handling Lehman’s bankruptcy,
could not be reached for comment.
Filed by Hilary Potkewitz of Crain’s New
York Business, a sister publication of Workforce Management. To comment, e-mail
editors@workforce com.
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