Although the Bankruptcy Court has authorized WARN Act payments to terminated employees in an estimated amount of $8 to $10 million, Circuit City has not made any payments at all.
Washington, D.C. (PRWEB) March 20, 2009
Kantrowitz Goldhamer & Graifman and The Mason Law Firm, L.L.P., have filed a class action lawsuit in the United States Bankruptcy Court for the Eastern District of Virginia, Mondragon v. Circuit City Stores, Inc., et al., Civil Action No. 09-03073-KRH, on behalf of several hundred employees who were laid off by Circuit City in November 2008 and thereafter without receiving prior notice. Circuit City, the country's largest consumer electronics retailer, filed for Chapter 11 bankruptcy protection on January 16, 2009. The Worker Adjustment and Retraining Notification Act (the "WARN Act") provides that employers must give sixty days notice to employees prior to a plant closing or mass layoff. The lawsuit seeks sixty days wages and benefits in lieu of the notice. The lead plaintiff, Marlon Mondragon, was employed by Circuit City at its retail outlet located in the Palisades Mall, West Nyack, New York. Mondragon filed this lawsuit on behalf of all employees who were part of the layoffs.
"The WARN Act provides for sixty days advance notice of plant closings and mass layoffs to affected employees" said Gary Graifman of Kantrowitz Goldhamer & Graifman, P.C., an attorney for the plaintiffs. "Although the Bankruptcy Court has authorized WARN Act payments to terminated employees in an estimated amount of $8 to $10 million, Circuit City has not made any payments at all."
Co-Counsel Gary E. Mason of The Mason Law Firm, L.L.P., added that the lawsuit seeks compliance with the federal laws passed by Congress to protect employees from being abruptly terminated without notice.
Former employees of Circuit City who were part of these layoffs can obtain additional information by calling Gary S. Graifman of Kantrowitz Goldhamer & Graifman, P.C., at 845-356-2570, or by email or Gary E. Mason of The Mason Law Firm, L.L.P., 202-429-2290.