Peregrine Financial Hit With Class Action Claiming It Spontaneously Axed 300 Workers

russRussell Wasendorf Sr is the founder of Peregrine Financial Corporation.


July 12–A Peregrine Financial Corp. worker in Chicago has filed a lawsuit against the company, claiming that he was among “300 or so” employees laid off this week without 60 days’ written notice.Lawyers for Ronald Kotulak, who worked at Peregrine offices at 311 W. Monroe St. in Chicago until he was let go Monday, couldn’t be reached for immediate comment on whether the 300 layoffs occurred at Peregrine operations in the Chicago area or in Peregrine’s headquarters in Cedar Falls, Iowa.

Under the federal Worker Adjustment and Retraining Notification Act, an employer must give at least 60 days’ notice of terminations under certain circumstances, such as when more than 50 workers are let go or at least a third of a workforce at a facility.

Peregrine filed for Chapter 7 bankruptcy July 10 in a U.S. Bankruptcy Court in the Northern District of Illinois. The complaint was also filed here. Peregrine founder Russell Wasendorf Sr. attempted suicide at the company’s headquarters, and the business is also being sued by regulators who say there’s a $200 million shortfall in customer accounts.

Kotulak said in the suit, which seeks class-action status, that he and other workers seek to recover 60 days’ wages and benefits from the time they were fired Monday.

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