Fleetwood Settles Warn Act Lawsuit for $1.5 Million Dollars

FOR IMMEDIATE RELEASE – April 23, 2010  

Charles A. Ercole, of Klehr Harrison Harvey Branzburg, LLP and Eric H. Gibbs of Girard Gibbs LLP are pleased to announce that the parties have filed for preliminary approval of  a $1.65 million settlement in WARN Act and severance class action litigation against Fleetwood Enterprises, Inc., and its various subsidiaries.  Sandra Justice v. Fleetwood Enterprises, Inc., Civil Action No. 6:09-ap-01108-MJ (Bankruptcy Court, C.D. Cal.) and Curtis Jay Howe v. Fleetwood Enterprises, Inc., Adversary No. 6:09-01421-MJ (Bankruptcy Court C.D. Cal.).

Mr. Ercole and Mr. Gibbs served as co-lead counsel for a group of lawyers who filed multiple WARN Act cases that were later consolidated by the Court.  They also filed  a class action claiming severance for employees.  The lawsuits arose out of the sudden shutdown of Fleetwood’s operation in March 2009.   

Assuming the settlement is approved, employees could be paid as early as the fall of 2010.  The settlement will benefit approximately 600 WARN Act eligible employees at facilities in Edgerton Ohio, Pendelton and LeGrande, Oregon, and at the corporate headquarters in Riverside, California.  Fleetwood laid off the majority of those employees on or about March 9, 2009 without providing 60 days notice.  Additionally, employees who were potentially eligible for severance will receive a much smaller distribution because of the very limited likelihood that the severance litigation  would be successful.   

“It is a very good result under the circumstances” said Mr. Ercole.  “Many of these employees had been working reduced schedules for several months prior to the shut down in March 2009 and have still not found new jobs.  The average employee will receive the equivalent of several weeks pay.” 
 
The other attorneys and firms involved in representing the employees were:  

Shannon J. Carson, Esquire
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103  

Daniel C. Lapidus, Esquire, P.C.
Lapidus & Lapidus 
177 South Beverly Drive
Beverly Hills, CA 90212 

Richard M. Paul LL, Esquire
Stueve Siegel Hanson LLP
460 Nichols Road, Suite 200
Kansas, MO 64112

If you have any questions, feel free to contact Mr. Ercole or Mr. Gibbs at the below addresses.