Warn Act Lawsuit Against MF Global Seeks $25 Million

FOR IMMEDIATE RELEASE – November 14, 2011

Two former employees, Todd Thielmann and Pierre-Yvan Desparois, filed for damages on behalf of themselves and all employees laid off by MF Global when it laid off 1066 employees on November 11, 2011 without providing any advance notice. Mr Thielmann and Mr. Desparois worked in MF Global’s Chicago and New York offices, respectively. 

MF Global filed for bankruptcy on November 1, 2011 and laid off 1066 employees on Friday November 11, 2011, telling them their employment was being terminated immediately, they would be paid thru November 15 and health benefits will be cut off November 30. 

Failure to give sixty (60) days notice violates the federal Worker Adjustment and Retraining Notification Act (“WARN Act”). Additionally, all the laid off employees worked in either Chicago or New York and each state has its own WARN Act (and New York’s law requires 90 days notice as opposed to 60 under the federal law). The Complaint and Proof of Claim estimate the damages to be in excess of $25 million.   The case is being pursued in the United States Bankruptcy Court for the Southern District of New York.    

Charles A. Ercole, a partner with Klehr Harrison Harvey Branzburg LLP in Philadelphia, who represents Mr. Thielmann and Mr. Desparois, said, “We plan to exhaust all avenues to recover the money owed to these employees.  Given its deteriorating financial condition, MF Global clearly knew long before November 11, 2011 that it was going to have to close its doors and there is no reason WARN Act notices shouldn’t have been given,” said Mr. Ercole.

Klehr Harrison is a full service law firm with its primary office in Philadelphia. Mr. Ercole is Chair of the Labor and Employment practice group and has had significant recoveries for employees in numerous other WARN Act cases including $35 million for 2200 former employees of Qimonda North America; $6.775 million for 1900 former employees of USF Red Star; and $4.0 million for 550 former employees of Arrow Trucking.  

If you have any questions, please contact Charles A. Ercole.

Copies of the Adversary Complaint and Class of Proof of Claim that were filed today are on the www.klehr.com website under "MF Global News" or you can email Mr. Ercole for copies.

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