A quick update on the Mortgage Lenders Network matter I’ve covered a few times before (here and here.)
Earlier this month, a Delaware bankruptcy court approved of a $2.7 million settlement of a class-action lawsuit filed on behalf of more than 1600 employees, many of whom worked in Connecticut.
The settlement, first reported by the Hartford Courant, essentially covers wages and salaries that should have been paid during the 60-day WARN notice period. The average payout per employee is $1,636.
The Courant adds a few more details:
Monday’s settlement is separate from the civil lawsuit seeking unpaid wages and commissions being pursued by the attorney general and the state Department of Labor. That lawsuit seeks $2.6 million for about 100 employees.
Charles A. Ercole, a lawyer for the Philadelphia law firm that negotiated Monday’s settlement, said Monday that MLN was left with few assets when it filed for bankruptcy. But the company has subsequently been able to recover some money from lenders who provided lines of credit to fund MLN’s mortgage business, Ercole said.
"It is a very good settlement under the circumstances," Ercole said.
Final court approval is expected after a hearing Aug. 5. Checks could be sent out in early fall, Ercole said.