Former Tough Mudder Employees File Class Action Over Mass Layoff Following Bankruptcy Petition

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Eight former Tough Mudder employees have filed a proposed class action against the obstacle race organizer in which they claim they were not provided with at least 90 days’ notice of their termination from the company in accordance with New York law.

The lawsuit says that defendants Tough Mudder Incorporated and Tough Mudder Event Production Incorporated laid off every one of the more than 50 employees in their Brooklyn office on February 3, 2020. Alleging violations of New York’s Worker Adjustment and Retraining Notification (WARN) Act, the case asserts that employers must provide statutory notice or 90 days’ pay to those who are fired pursuant to a plant closing or lay-off.

In January 2020, a month after the defendants’ CEO departed, Tough Mudder was petitioned by three creditors for involuntary Chapter 11 bankruptcy due to owing the entities $855,000. The following month, reports surfaced that the operators of the Spartan Race and a federal court came to an agreement to give Spartan full possession of once-rival Tough Mudder’s U.S. and U.K. assets.

Initially filed in New York State’s Supreme Court on February 13, the case has been removed to the state’s Southern District, where Tough Mudder’s bankruptcy action is pending.