More than 550 former employees of US Fidelis in Wentzville, Mo., will share a nearly $1.5 million settlement reached in bankruptcy court.
The St. Louis Post-Dispatch reports that the April 18 deal settles allegations that the workers weren’t properly warned before being laid off. The federal Worker Adjustment and Retraining Notification Act requires companies to give workers 60 days’ notice of a mass layoff.
US Fidelis was once one of the nation’s largest sellers of auto service contracts. It collapsed in 2009 amid allegations of consumer fraud. The company filed for bankruptcy in 2010.
Former co-owner Darain Atkinson pleaded guilty earlier this month to federal charges of conspiracy to commit mail and wire fraud, and filing false tax returns. His brother, Cory, faces the same charges.
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