MF Global Holdings Ltd., parent of the bankrupt broker-dealer MF Global Inc., is being sued after firing 1,066 employees last week. The suit was brought on behalf of former employees who are seeking 60 days’ wages and benefits for allegedly being fired without cause.
The Worker Adjustment and Retraining Notification Act requires employees to get 60 days advanced written notice of firing which, according to the filing in Manhattan bankruptcy court, they did not receive.
A spokesperson for Giddens, the trustee appointed to liquidate the broker-dealer, said that Giddens “acted appropriately in connection with the termination of employees as part of the court-mandated liquidation and wind-down of MF Global Inc.”
MG Global Holdings, Ltd. filed Chapter 11 bankruptcy on October 31 after bets made on European sovereign debt did not pay off. The same day the Securities Investor Protection Corp sued MF Global Inc. to put it in liquidation (In re MF Global Inc., 11-ap-2790, U.S. Bankruptcy Court, Southern District of New York).