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WARN Act Private Equity

Dechert LLP

WARN Act Decision Highlights Employment Risks for Private Equity Sponsors

Dechert LLP on

In considering whether two entities should be considered a “single employer” for purposes of the WARN Act, the Fifth Circuit concluded that “the question of de facto control is of such importance that liability might be...more

Proskauer - The Capital Commitment

The Portfolio Company Playbook – Chapter 3: Navigating Risk from Company Employee Claims

Another source of litigation risk for fund sponsors are claims brought by portfolio company employees. Sponsors should be aware of these risks, particularly when the portfolio company is in distress or is considering a sale...more

Proskauer - Law and the Workplace

Employees Face Uphill Battle in Holding Private Equity Firms Accountable under WARN Act

The United States District Court in Delaware recently issued a welcome decision for private equity firms whose portfolio companies run afoul of the Worker Adjustment and Retraining Notification Act (the “WARN Act”). In In re...more

McDermott Will & Emery

Focus on Private Equity - April 2014

McDermott Will & Emery on

In This Issue: - Private Equity Firms Face Potential Liability Under Plant Closing Laws - Incentivising Management Across the Pond - Excerpt from Private Equity Firms Face Potential Liability Under Plant...more

Mintz - Employment, Labor & Benefits...

Who Should Hold the Bag for Employment Liabilities When the Portfolio Company Goes “Belly-Up”? The private equity firm, maybe.

In the world of private equity, vast sums of money are raised by private investors who pool their money into collective funds in order to acquire companies, i.e., a “portfolio company”, with the goal of eventually flipping...more

Akin Gump Strauss Hauer & Feld LLP

Court Upholds Claim Against Private Equity Firm for Federal Labor Law Violation Stemming from Closure of Portfolio Company

A decision last month by the district court for the Northern District of Indiana is the latest in a string of recent judicial decisions to confirm that a plaintiff has successfully stated a plausible claim for relief under...more

BakerHostetler

A WARNing to Private Equity Regarding Potential Liability for Employment Decisions by Portfolio Companies

BakerHostetler on

A federal district court in Indiana recently ruled that a plaintiff's class action lawsuit could proceed against both a New York private equity firm and one of its portfolio companies for an alleged violation of the Worker...more

BakerHostetler

Indiana District Courts Finds Private Equity Firm Potentially Liable in WARN Class Action

BakerHostetler on

This seems to be the month for class action cases presenting unusual issues in combination. Last week we wrote about a class action disparate impact claim of disability discrimination against the obese in which the court...more

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