The U.S. Bankruptcy Court for the District of Delaware recently denied a motion to dismiss an employee class adversary action lawsuit under the Worker Adjustment and Retraining Notification Act in the TSC Global Chapter 7 cases, holding that plaintiffs pursuing pre-petition WARN Act claims are not restricted to filing proofs of claim.
The ruling sets the stage for former employees to seek to proceed as a class in the adversary proceeding rather than individually by filing proofs of claim in the bankruptcy cases. Courts are divided on whether WARN Act claims should proceed through the claim process or by class-action adversary proceedings.
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