Heller Ehrman’s employees have been offered $7.5 million to settle their $30 million claim in the bankruptcy, according to a letter sent to the employees’ counsel from the Heller estate’s employment lawyer, John Fox at Manatt Phelps & Phillips.
The staff’s lawyers at litigation boutique Blum Collins are urging their clients to reject the settlement offer because “the firm seeks to take advantage of employees’ desperation,” according to a letter from Blum Collins.
The letters were provided by an employee on the condition that they not be posted. The employee declined to be named.
The proposed settlement would end Biggers v. Heller Ehrman, a class action that seeks unpaid vacation and WARN Act money for hundreds of employees. At least 95 percent of employees involved in a class action must sign on to complete the settlement.
A settlement is not required for employees to receive money in the bankruptcy. The Heller estate can also propose an amount in its liquidation plan, and if Judge Dennis Montali agrees, that will be the amount distributed to employees.
— Amanda Royal
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