Holding the defensive line: Delaware court rejects extension of WARN Act liability to private equity sponsor

On May 10, 2013, Judge Brendan Linehan Shannon of the United States Bankruptcy Court for the District of Delaware rejected an attempt to hold a private equity sponsor liable for its portfolio company’s alleged violations of the federal Worker Adjustment and Retraining Notification Act (the “WARN Act”) under the “single employer” theory of liability.

Filed under:
USA, Delaware, Corporate Finance/M&A, Employment & Labor, Insolvency & Restructuring, Litigation, Debevoise & Plimpton, Corporate governance, Private equity, Worker Adjustment and Retraining Notification Act 1988 (USA), United States bankruptcy court, US District Court for District of Delaware
Authors:
M. Natasha Labovitz , Shannon M. Kahn , Jasmine Ball , Richard F. Hahn , George E.B. Maguire , My Chi To
Location:
USA
Firm:
Debevoise & Plimpton