WL Homes gets initial OK of $938,250 settlement with former employees

By Kali Hays

New York, March 26 - WL Homes, LLC obtained preliminary approval of its proposed $938,250 settlement agreement resolving claims by former employees of violations to the Worker Adjustment and Retraining Notification Act, according to a Tuesday order filed with the U.S. Bankruptcy Court for the District of Delaware.

The class representative, Lyne Decuir, filed a complaint in October 2009 against the company accusing it of WARN Act violations related to the mass layoffs undertaken in June 2009.

A court certified the class action in May 2010 and the class representative and the company's trustee have been negotiating since, according to the filing.

Under the settlement agreement, within 16 days of court approval, each of the 85 class members will receive payment of $10,950 and all claims against the company will be released. The class representative will receive an additional $7,500 for her services in the case.

A final approval hearing is scheduled for April 28.

WL Homes, an Irvine, Calif.-based homebuilder, filed for bankruptcy on Feb. 19, 2009. Its Chapter 11 case number is 09-10571.

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