Judge dismisses MF Global employee termination lawsuit

A judge ruled that the WARN Act did not apply to MF Global’s brokerage unit, but left the door open for a suit against the parent company

The trustees overseeing the liquidation of MF Global have one less thing to worry about, after a judge dismissed a wrongful termination suit filed by a group of the bankrupt brokerage’s former employees.

The employees had argued that they were fired without warning after the company’s sudden October 2011 collapse. According to their suit, this violated the Worker Adjustment and Retraining Notification (WARN) Act, which requires companies to give employees 60 days’ advance written notice of mass layoffs.

Alanna Byrne

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