Solyndra eyes $3.5 settlement related to alleged WARN Act violations

By Lisa Kerner

Charlotte, N.C., Aug. 13 - Solyndra LLC, 360 Degree Solar Holdings, Inc. and class members asked the court to approve a settlement agreement related to mass layoffs and plant closings last August, according to documents filed with the U.S. Bankruptcy Court for the District of Delaware.

The class members claim the debtors failed to provide notice required by the Worker Adjustment and Retraining Notification Act and damages of about $15 million plus attorneys' fees and costs.

Under the settlement, $3.5 million will be advanced to Solyndra under its Chapter 11 plan to satisfy the allowed WARN priority unsecured wage and benefits claims of the class.

The settlement also provides for certification of a class comprised of all persons employed by the debtors in the United States, as well as payment of attorneys' fees and other costs.

A hearing is set for Sept. 7.

Solyndra is a Fremont, Calif.-based manufacturer of cylindrical solar photovoltaic systems for large industrial and commercial rooftops. The company filed for bankruptcy on Sept. 6, 2011. Its Chapter 11 case number is 11-12799.

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