U.S. Fidelis Employees To Split $1.45 Million Settlement
ST. LOUIS (KMOX)-Despite objections from the Missouri Attorney General’s office, over 550 former U.S. Fidelis employees will split a $1.45 million settlement, for not getting 60-days notice that they were about to be laid off.
Kris Koster’s office had argued that because some of those employees were involved in the misleading and unfair business activities that led to the auto warrant sales firm’s bankruptcy, they should not get a share of the bankruptcy pool.
Creditors’ Attorney David Warfield says Koster has a good point but, “Had this case gone to trial we think the employees would have collectively recovered about $3.5 million and our proposed settlement is only 40% of that amount.”
Federal Judge Charles Rendlen III agreed.
Warfield says the employees would have won their suit, because U.S. Fidelis did violate the federal Worker Adjustment and Retraining Notification act.
Warfield says the settlement does allow the attorney general to seek to knock up to 20 of the, “really bad actors” out of the settlement completely.