Former MF Global employees are suing the bankrupt firm for firing them without prior notice and possibly violating New York labour laws. [via Reuters]
According to the New York labour Department, any company laying off more than 25 workers must give their employees 90 days notice and post a WARN notice to the labour Department’s web site.
It is not clear if the rule applies to a liquidating bankrupt company, and Business Insider has reached to the New York labour Department for clarification.
MF Global also has offices in Chicago, though it is unclear if employees at that location will have claim to this lawsuit. The filing does list Todd Thielmann, a floor broker in the Chicago office, as a plaintiff, along with Pierre-Yvan Desparois, a former vice president in credit risk management at the New York office, Reuters reported. Thielmann and Desparois are seeking over $25 million in damages, according to FINS.
UPDATE: Julie Steinberg at FINS is reporting that there were three separate lawsuits filed by former MF Global employees. The two other lawsuits were filed by former empoyees Natalie Sivova and Anthony Abruzzo, both on behalf of themselves and other former employees for 60 days of wages and benefits.
Last Friday, MF Global’s trustee James Giddens announced that 1,066 employees in MF Global’s brokerage unit were to be laid. The last day of pay would be November 15, and benefits would expire at the end of the month. One women who spoke to Business Insider said she had heard about her termination on MarketWatch.
Ironically, some attorneys anticipated this happening. Employee rights law firm Outten & Golden released a statement last Monday on how MF Global employees, while bracing for termination, “may have significant claims in the bankruptcy, but the payouts may be hard to reach.”
More details to come as we get it. In the meantime, check out our legal round-up of MF Global’s bankruptcy.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.