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Klehr Harrison Lawyers Achieve $2.7 million Class Action Settlement with Mortgage Lenders Network

05.11.09

Klehr Harrison Harvey Branzburg & Ellers has reached a proposed settlement of $2.7 million dollars on behalf of approximately 1,650 former employees of Mortgage Lenders Network who were laid off without notice when the company shut down suddenly in January 2007. The employees worked in MLN offices across the country including Phoenix, Arizona; Connecticut (various locations); Alpharetta, Georgia; Schaumburg and Oakbrook, Illinois; and Horsham, Pennsylvania. 
 

On Monday, May 11, Judge Peter Walsh of the Delaware Bankruptcy Court preliminarily approved the Settlement and form of Notice to be sent to Class Members. In Giuseppe Caccamo and Robie Lyn Harnois v. Mortgage Lenders Network, Klehr Harrison alleged that MLN violated the Worker Adjustment and Retraining Notification Act (“WARN Act”) by failing to give notice of the shutdown at least 60 days in advance. MLN denied liability claiming that the unforeseen business circumstances in the sub-prime lending market allowed it to give reduced notice under the WARN Act for the abrupt closure.   MLN filed for bankruptcy and ultimately had limited assets to satisfy any obligations. 
 

“It’s a very good settlement under the circumstances,” said Charles A. Ercole who prosecuted the case and negotiated the settlement along with his bankruptcy partner, Richard M. Beck, Esquire. “The Class Notices will go out in the next couple of weeks and the Settlement should get final court approval at the Fairness Hearing scheduled for August 5. Employees should receive their checks in early fall,” said Mr. Ercole. 
 

For additional information please contact Charles A. Ercole at cercole@klehr.com or 215-569-4282.