Case News

Class Action Filed on Behalf of Raydon ESOP Participants

On December 5, 2018, Plaintiff Stephanie Woznicki filed a class action in the United States District Court for the Middle District of Florida in Orlando against Raydon Corporation, as well as Donald K. Ariel, David P. Donovan, the ESOP Committee of the Raydon Corporation Employee Stock Ownership Plan and Lubbock National Bank under the Employee Retirement Income Security Act of 1974 (“ERISA”) on behalf of herself and a class of participants in, and beneficiaries of, the Raydon Corporation Employee Stock Ownership Plan (“the ESOP” or “the Plan”) to restore losses to the Plan.

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Court Orders CSC to Pay Systems Administrators Time-and-a-Half for Overtime, As Well As Matching Liquidated Damages

On November 9, 2018, the United States District Court for the District of Connecticut ruled that Defendant Computer Sciences Corporation in the matter of Strauch v. Computer Sciences Corp., No. 14-956 (D. Ct.), had to pay its misclassified professional and associate professional systems administrators who opted into the case pursuant to the standard time-and-a-half method for calculating unpaid overtime, rather than the half-time “fluctuating workweek” standard sought by CSC. This decision effectively results in these systems administrators being entitled to three times as much as they would have been entitled to under the fluctuating workweek methodology. In addition, the court ruled that systems administrators who opted into the case were entitled to liquidated damages equal to their claims for unpaid overtime under federal law.

Feinberg, Jackson, Worthman & Wasow, alongside co-counsel at Outten & Golden and Lieff, Cabraser, Heimann, & Bernstein, had previously succeeded at a trial on the merits of the misclassification issue in December 2017, with damages to be determined at a later date. Final damages in the case are still left to be resolved in light of the court’s latest order, in particular the appropriate inferences to be made where CSC produced incomplete records.

Press coverage of the November 9 order is here. For more information on the December 2017 CSC trial, click here.

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A Win for Workers in Background Check Case at the California Supreme Court

Affirming a judgment of the Court of Appeals in favor of bus driver aide Eileen Connor, on behalf of hundreds of other bus drivers and aides, the California Supreme Court today upheld the constitutionality of one of California’s background check statutes, the Investigative Consumer Reporting Agencies Act.

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Second Class Action Filed on Behalf of Former Wawa Employees Over ESOP Shares

On August 8, 2018, Feinberg, Jackson, Worthman & Wasow LLP, along with co-counsel at Block & Leviton LLP, Cohen Milstein Sellers & Toll PLLC, and Donahoo & Associates PC, filed a class action against Wawa, Inc. and related defendants on behalf of ex-employees of Wawa who were not part of  the class in prior litigation against the Wawa ESOP.

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Court Denies Motion to Compel Arbitration of Class Members’ Claims in Castro v. ABM Industries, et al.

On May 14, 2018, Judge Yvonne Gonzalez Rogers of the United States District Court for the Northern District of California denied a motion to compel arbitration of class members’ claims by defendants ABM Industries, Inc., et al., instead revising the class definitions to exclude claims by some Cleaners beginning in 2016, when three collective bargaining agreements containing arbitration clauses became effective.

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Preliminary Approval of Atrium ESOP Settlement

On April 12, 2018, the United States District Court for the Eastern District of New York granted preliminary approval of a $1.4 million class action settlement on behalf of the participants and beneficiaries of the Atrium Management Services, Inc. Employee Stock Ownership Plan (“Atrium ESOP”).

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Motion for Preliminary Approval of Tennyson ESOP Class Action Settlement

On March 20, 2018, Plaintiffs Manley Gough, Curtis Bryant and John Gouveia filed a motion in the United States District Court for the Northern District of California seeking preliminary approval of a $1.75 million class action settlement on behalf of the participants and beneficiaries of the Tennyson Electric, Inc.

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