SAN FRANCISCO–(EON: Enhanced Online News)–Gibbs Law Group LLP, Stueve Siegel Hanson LLP, and Rudy Exelrod Zieff & Lowe LLP are pleased to announce that a proposed class action settlement has been reached in a lawsuit brought on behalf of former employees of Spansion Inc. whose employment was terminated on or around February 23, 2009. The settlement resolves claims that Spansion violated the California and federal Worker Adjustment and Retraining Notification Acts (“WARN” Act) by failing to provide terminated employees with adequate advance notification of the mass layoff. The WARN Act generally requires companies with 100 or more employees to provide sixty calendar day advance notification of plant closings and mass layoffs.
“The settlement is a great resolution to this case because it will provide each former employee with substantial compensation intended to remedy the financial impact of the sudden job loss”
Under the proposed settlement, more than 750 former Spansion employees will receive a portion of an $8.568 million global settlement fund, with cash payments to be made directly to class members. Certain individuals will have the option of receiving a portion of their settlement benefits compensated through stock or a liquidated stock distribution. Class members include more than 600 terminated employees from the Sunnyvale, California location and more than 150 employees who were let go in Austin, Texas.
The lawsuit, entitled Cabreros and Refuerzo, et al. v. Spansion, LLC and Spansion, Inc., Adversary Proceeding No. 09-50409-KJC, was filed in the United States Bankruptcy Court for the District of Delaware. The class was represented by Gibbs Law Group LLP, Stueve Siegel Hanson LLP and Rudy Exelrod Zieff & Lowe LLP.
“The settlement is a great resolution to this case because it will provide each former employee with substantial compensation intended to remedy the financial impact of the sudden job loss,” said Eric Gibbs of San Francisco-based Gibbs Law Group LLP. “We have been very proud and pleased to help class members press for their rights under the WARN Act and to obtain a great result in the face of multiple defenses and a company in bankruptcy,” added Kenneth Sugarman of Rudy Exelrod Zieff & Lowe LLP.
A preliminary approval hearing is scheduled for March 23, 2010. To find out more information about the settlement, visit http://www.classactionagainstspansion.com.
Gibbs Law Group LLP is one of the nation’s leading firms in prosecuting complex litigation cases including class and mass action cases. Rudy, Exelrod, Zieff & Lowe, LLP (www.rezlaw.com) is a nationally-recognized firm specializing in representing employees in individual and class action cases. Stueve Siegel Hanson LLP (www.stuevesiegel.com) represents plaintiffs and defendants nationwide in complex securities, business, class action, wage and hour, environmental, and product litigation and trials.
Gibbs Law Group LLP
Eric Gibbs, 415-981-4800
Rudy Exelrod Zieff & Lowe LLP
Kenneth Sugarman, 415-434-9800