WARN Act, ERISA Class Action Filed Against Kohlberg Ventures

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Kohlberg Ventures, LLC, the owning and financial entity behind subsidiary ClearEdge Power, is facing a proposed class action filed over alleged violations of the Employee Retirement Income Security Act of 1974 (ERISA) and the Worker Adjustment and Retraining Notification Act (WARN). Kohlberg Ventures was the employer of ClearEdge Power employees and funded the company for 10 years before deciding to pull its funding of the fuel cell manufacturer, which resulted in immediate bankruptcy and worker layoffs. The plaintiff claims Kohlberg Ventures violated federal law by failing to give employees at least 60 days’ notice before being terminated, as mandated by the WARN Act.

“As a consequence, upon their termination,” the lawsuit argues, “[the plaintiff] and other similarly situated employees of [the defendant] were entitled under the WARN Act to recover from [the defendant] 60 days’ wages and ERISA benefits.”