Coda hit by WARN Act lawsuit after bankruptcy
Following bankruptcy proceedings over at Coda Automotive, we can't say we're surprised by talk of a WARN Act lawsuit. After all, US Worker Adjustment Retraining Notification (WARN) Act proceedings were taken against Fisker Automotive in April. So we kind of know the drill.
The WARN Act's purpose is to give workers and their families "some transition time to adjust to the prospective loss of employment, to seek and obtain other jobs, and, if necessary, to enter skill training or retraining that will allow these workers to compete successfully in the job market."
In Coda's case, a lawsuit was filed by former employee Tony Bulchack, and alleges that the mass layoffs that took place in December 2012 happened without giving the 125 workers laid off then the required 60-day notices. Discussions of a WARN act lawsuit against Coda has been in the works for a while over at Girard Gibbs law firm as well. Bulchack's complaint is embedded below.
Coda announced two weeks ago that it will no longer sell electric vehicles and will instead restructure as an energy storage business.