Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

Judge approves class action suit against First Guaranty

Email A Friend Printer Friendly Version
0 comments
Case Law, Nonbank Financial
Friday, January 20, 2023

A lawsuit filed by former employees of First Guaranty Mortgage Corp. was granted class action status by a federal bankruptcy judge. The suit contends that the lender failed to comply with Worker Adjustment and Retraining Notification (WARN) Act requirements when it laid off 471 employees “without cause” or notice in June 2022.

The WARN Act requires businesses that employ at least 50 people to provide 60 days’ notice in writing of a mass layoff or plant closing if the total number of employees laid off represents at least one-third of the total workforce. Failure to comply typically requires payment to affected employees. The more than 400 employees potentially in the class for this suit make up approximately 80 percent of First Guaranty’s workforce on the date of the layoff.

The lawsuit was originally filed in U.S. District Court for the Eastern District of Texas but was refiled in the U.S. Bankruptcy Court for the District of Delaware following First Guaranty’s chapter 11 bankruptcy filing less than one week after the layoffs were announced.

The court order certified the class action, appointing the five plaintiffs as class representatives, and included a list of 425 former employees who are part of the class. The order does not indicate why 46 employees who were laid off at the same time were not included in the list of class members.

The order required First Guaranty to provide “an electronic spreadsheet containing the names and last known addresses, as noted in First Guaranty’s records of the former employees” included in the provided list within 10 business days of the order being issued. It also ordered that attorneys for the class must mail a notice to each member of the class at their last known address within 15 days of receiving that list.

The lawsuit seeks to require First Guaranty to pay each member of the class “unpaid wages, salary, commissions, bonuses, accrued holiday pay, accrued vacation pay, pension and 401(k) contributions” and other benefits for the “60 days that would have been covered and paid under the then-applicable employee benefit plans had that coverage continued for that period” as required by the WARN Act.

Today's other top stories
CBA offers suggestions for Section 1033 rulemaking
Court dismisses class action against OppFi
NCRC sends 2023 policy agenda to 118th Congress
Mortgage payments fell in December
Bank M&A activity hits five-year low


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
CAPTCHA Validation
CAPTCHA
Code:
: 
: 
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 552 times.

Monthly Newsletter

Dodd Frank Update January 2023

Cover Story:

Banks reporting less regulatory pain than last year


Tweets from @DoddFrankUpdate/lists/industry-news
News by Topic   News by Edition   News by Agency   News by Industry   Special Reports   Events
Banking
Case Law
Consumer Protection
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update January 2023
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
2023 State of the Industry
Mortgage Technology
Real Estate Compliance Outlook
Forbearance Has Ended, Now What?
Optimizing AI and Blockchain for the Future
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars

Library   About   Subscribe   Other Publications
The Dodd-Frank Act Position Papers
Dodd-Frank Summary & History Legislation
Court Actions Regulations
Enforcement Documents Reports, Studies and Surveys
Guidance Documents Federal Register Notices
White Papers  
 
Dodd Frank Update
Contact / Editors
Advertise
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2023 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
INDUSTRY
SPECIAL REPORTS
EVENTS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Consumer Protection
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
2023 State of the Industry
2022 Mortgage Techology
Real Estate Compliance Outlook
Marketing Compliance for Lenders
Best Practices
Archives
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
2023 Economic Forecast Series
CFPB Unconstitutionally funded?
Evolving Lender Relationships
Manufactured Housing
Evolving Realtor Relationships
CFPB Update
Move to ANSI Standards
Tech for RESPA Compliance
Collaborating on eClosings
Webinar Archives
Executive Interview Series
eClosing Solutions Showcase
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Social Media
Are You An Expert?
Subscriber Agreement