Laid off Employees Settle with Solyndra for $3.5M

by San Antonio Attorney

Solar panel manufacturer Solyndra would pay $3.5 million to settle a lawsuit filed by its former employees who accused the company of not notifying them properly that they had been laid off. The company received $535 million of U.S. government loans but filed for Chapter 11 bankruptcy last year.

The settlement papers were filed on Friday in the Delaware Bankruptcy Court. The deal was made one week after the solar panel maker filed its reorganization plan. The Chapter 11 plan would be reviewed by U.S. Bankruptcy Judge Mary Walrath, who is handling the case.

About 850 employees of Solyndra were laid off in August 2011. Before it filed for bankruptcy, it had 960 employees. They sued the company claiming that they should have received notices not less than 60 days before they were laid off.

According to the settlement papers, the employees claimed $15 million in damages for lost benefits and wages.

The lawyer representing the workers said that the settlement was favorable to them.

Solyndra’s lawyer, Debra Grassgreen, refused to comment.

Solyndra was granted with the huge government loan in September 2009. In 2010, President Barack Obama visited its facilities in California.

The present administration has been heavily criticized by the republicans for the way the loans were handled. The House Energy and Commerce Committee said that what happened to Solyndra is a tale that should warn an administration not to tie itself closely to a project because it can tarnish its economic policy.

In defense, the Obama administration has said that the financial aid to Solyndra was rigorously scrutinized before it was granted.

Aside from receiving $535 million in government loans to build its factory, Solyndra also raised almost $1 billion in equity and loans.

 

–      Chapter 11 bankruptcy case could be in court for many years. For this reason alone, you need to hire a bankruptcy lawyer. San Antonio Attorneys who have many experiences in handling bankruptcy cases know the  ins and outs of bankruptcy.

 

 

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