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Published on 9/13/2018 in the Prospect News Distressed Debt Daily.

Product Quest’s terminated employees file lawsuit to recover back pay

By Caroline Salls

Pittsburgh, Sept. 13 – A group of former Product Quest Manufacturing, LLC employees filed a class action lawsuit accusing the company of violations of the federal Worker Adjustment and Retraining Notification (WARN) Act and the North Carolina Wage and Hour Act, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the former employees said they are seeking recovery of accrued vacation pay and unpaid wages for time worked.

Lead plaintiff Jonathon Walker alleged in the complaint that he and 296 employees, were terminated as part of a mass layoff ordered by Product Quest on Sept. 6 at its facility in Kannapolis, N.C., and another roughly 300 employees who worked at the facility in Daytona, Fla., were terminated on Aug. 12 when the company ceased operations there.

“In carrying out these terminations, defendants failed to give plaintiff and other similarly situated employees at least 60 days’ advance notice of termination, as required by the WARN Act,” the complaint said.

Holly Hill, Fla.-based Product Quest manufactures primarily over-the-counter drugs and cosmetics, as well as some prescription drugs and animal health products. The company filed bankruptcy on Sept. 7 under Chapter 11 case number 18-50946.


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