Cabreros et al v. Spansion, LLC and Spansion, Inc., Adversary Proceeding No. 09-50409 (Bankruptcy Case No. 09-10690), U. S. Bankruptcy Court, District of Delaware

Refuerzo v. Spansion, Inc., U.S. District Court for the Northern District of California

Rudy Exelrod Zieff & Lowe filed a class action complaint on February 26, 2009 against Spansion, Inc., alleging that Spansion violated federal and California law (the WARN Act) by conducting a mass layoff in Sunnyvale, California without providing the advance notice required by law. The action was filed in the United States District Court for the Northern District of California. Spansion filed for Chapter 11 bankruptcy on March 1, 2009. Following the bankruptcy, Rudy Exelrod Zieff & Lowe, together with co-counsel firms, filed a class action complaint in the bankruptcy case in the United States Bankruptcy Court for the District of Delaware, which superseded the pre-bankruptcy lawsuit that had been commenced in California for practical purposes.

In October 2009, the parties negotiated and agreed upon the principle terms of a proposed class action settlement. On November 4, 2009, for purposes of facilitating the proposed settlement, the plaintiffs filed an amended complaint alleging that Spansion had also violated the federal WARN Act with respect to mass layoffs that the company had carried out at its facility in Austin, Texas.

On June 4, 2010, following preliminary approval and notice to the class members, the Bankruptcy Court granted final approval of a class action settlement resolving all of the claims in the case for a total of $8.6 million in allowed priority and unsecured claims in Spansion's bankruptcy case. The settlement covers 615 employees who worked at Spansion's Sunnyvale, California facilities and 161 employees who worked at Spansion's Austin, Texas facility. Payments to class members were made in accordance with the settlement and the case has concluded.

If you have any questions about this case, please call David Lowe at 415-434-9800.