Reuters: Bankruptcy News: Solyndra agrees to $3.5 mln employee layoff settlement

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Solyndra agrees to $3.5 mln employee layoff settlement Aug 13th 2012, 17:33 By Nate Raymond Mon Aug 13, 2012 1:33pm EDT Aug 13 (Reuters) - Solyndra, the solar panel maker that collapsed despite receiving millions of dollars in U.S. government loans, has agreed to pay $3.5 million to settle accusations it did not properly notify employees that they would lose their jobs. Settlement papers outlining the pact were filed in U.S. Bankruptcy Court in Wilmington, Delaware, on Friday. The agreement came a week after Solyndra filed its Chapter 11 reorganization plan. The employee accord is subject to approval of U.S. Bankruptcy Judge Mary Walrath, who is overseeing the bankruptcy case. The Fremont, California-based company laid off about 850 of its 960 employees days before filing for bankruptcy in September 2011. Employees sued, alleging they were entitled to at least 60 days' notice before losing their jobs. The employees sought up to $15 million in damages for lost wages and benefits, according to the settlement papers. "We think it's a favorable settlement," Jack Raisner, a lawyer for the employees at the law firm Outten & Golden, said on Monday. Debra Grassgreen, a lawyer for Solyndra, declined to comment. Solyndra received a $535 million loan from the U.S. Department of Energy in September 2009. President Barack Obama toured its facilities in 2010. Republicans have criticized the Obama administration's handling of the loans. A report by the House Energy and Commerce Committee earlier this month called Solyndra "a cautionary tale of what happens when an administration ties itself to a project so closely that it becomes the poster child of its signature economic policy." The Obama administration has defended the financial aid to Solyndra, saying it was subject to rigorous scrutiny. The case is Solyndra LLC, Case No. 11-12799, U.S. Bankruptcy Court, District of Delaware. Link this Share this Digg this Email Reprints

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