Ex-employees sue Akorn Pharmaceuticals over sudden layoffs

Akorn layoffs class action lawsuit overview: 

• Who: A group of four former employees of Akorn Pharmaceuticals have filed a class action lawsuit against the company in the wake of a mass layoff last week. 
• Why: The now-former workers claim Akorn violated the WARN Act by allegedly failing to provide them with the legally required notice prior to informing them that they were getting laid off.
• Where: The former employees worked at Akorn’s production facilities in Decatur, Illinois.

Akorn Pharmaceuticals unlawfully laid off around 450 employees from its production facilities in Decatur, Illinois last week, a new class action lawsuit alleges. 

A group of four now-former Akorn employees claim the company provided them with enough notice prior to informing them they were being laid during a company-wide video call, reports WCIA. 

The former employees reportedly argue they legally should have been afforded 60 days’ written notice that they would be losing their employment, or that Akorn would be closing down its U.S. locations.

Akorn is ultimately accused of violating the WARN Act. The company, meanwhile, has filed a state WARN notification with the Illinois Department of Labor, reports WCIA. 

The department is reportedly set to “immediately” begin an investigation into how Akorn handled the mass layoff. 

A company with more than 75 employees is legally obligated to provide its workers — along with the local and state government — at least 60 days notice prior to conducting a mass layoff or plant closure, reports WCIA. 

Akorn informed laid-off employees that they would not be given severance pay, to lose all benefits

Akorn reportedly allegedly failed to provide any of the three aforementioned with notice prior to conducting the mass layoff.

In addition to learning that they were being laid off during a video call last week, Akorn also told its employees they would not be given any severance pay and that they would lose all of their benefits, reports WCIA. 

An employer who commits a WARN Act violation can reportedly be subjected to civil penalties, with a potential scenario within the context of the law stipulating that an employer may have to provide back pay and benefits for up to 60 days. 

Last month, a federal judge in California ruled that a group of five former Twitter employees who had filed a class action lawsuit against the company over a November 2022 mass layoff would have to independently arbitrate their claims. 

Has your employer failed to provide legally required notice prior to conducting a mass layoff? Let us know in the comments!

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