The bankrupt effects house has reached a million-dollar settlement to end lawsuits filed against it by a pair of pink-slipped employees. Today’s LA Bankruptcy Court filing includes a proposed settlement of potential class action claims in which Anthony Barcelo and Thomas Capizzi each would get $10,000 as the class reps and the remaining $980,000 would be divvied up among the 238 other employees let go by Rhythm & Hues while it filed for Chapter 11 bankruptcy protection on February 11. Ten days later, separate suits were filed by Barcelo (read it here) and Capizzi (read it here) claiming they were fired without proper written notice or cause. Today’s proposed settlement, of which plaintiffs’ attorneys would take a third plus court costs, addresses those and other claims. A bankruptcy judge must approve the settlement, and fired R&H staffers have the right to opt out.
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