BusinessCompany NewsLehman employees start $5m class action suit

Lehman employees start $5m class action suit

Lehman employees, led by a computer programmer, have filed a $5m class action suit against the bank

A computer programmer, Miron Berenshteyn, who worked as a senior java
developer at Lehman
Brothers
‘ data centre in Jersey City, filed a suit against the bank in a New
York bankruptcy court this week on behalf of 100 former employees who lost their
jobs during layoffs on September 9.

The suit seeks 60 days pay and benefits as well as severance pay of one
week’s wages for every year worked. If the class action is certified, it could
include about 1,000 ex-employees and be worth more than $5m, according to
Finextra.com.

Lawyers from Outten
& Golden
, representing Berenshteyn, claim Lehman breached the Worker
Adjustment and Retraining Act, which requires 60 days advance notice in writing
of a layoff, when Lehman stopped paying the staff before the 60 days were up.
Lehman filed for bankruptcy on September 15.

The UK bank has reportedly been handing out pink slips to fixed income and IT
support staff at Lehman’s North American brokerage operations, beginning early
last month. Up to 3,000 staff are expected lose their jobs by the end of the
year.

Further reading:

Lehmans creditors’ meeting set for 14 November

Lehman sheds 750 jobs as sale fails

Read
the Finextra.com story

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