AB&C Employees Receive Settlement

  • Published: 09/22/2011
  • Viewed: 10130 times.

Hammer, Ferretti & Schiavoni announced that on Monday, August 29, 2011 HBS Class Action Administration distributed the court-ordered AB&C settlement to over five-hundred former AB&C employees.

David Hammer, lead council for the Class, discussed some of the hurdles in distributing the settlement, “Due to the unexpected and sudden closure of AB&C and resulting involuntary bankruptcy, many payroll records were lost or destroyed. We had limited historical employee data to develop an equitable means of distribution to former employees in two states for wage and damage claims arising under three distinct cause of action: Fair Labor Standards Act, WARN Act, and Wage Payment and Collection Act. In this economy, many, many of those former employees desperately needed their share of the settlement as soon as possible. Quite simply, we couldn’t have developed a quick and efficient distribution methodology without the professional assistance of HBS Class Action Administration.”

“We’re just happy to help,” states Brett Hersh, President of HBS Class Action Administration. “It seems that nearly everyone knows a family touched by AB&C’s sudden closing.” Hersh shared Hammer’s sentiment regarding the settlement, “This settlement distribution has proved quite engaging,” and cited a confluence of factors making it particularly unique. “As Mr. Hammer stated, the settlement addressed three separate statutory awards. This created several classes of disbursement and prescribed allocations for each separate class.  Several awards were further divided into wages and other forms of payment, demanding specialized accounting and reporting procedures.  Since AB&C operated multi-state facilities, wage allocations required the calculation of applicable employer taxes and withholdings for each applicable state.

“Another hurdle present in the AB&C settlement was it being a ‘fixed-sum distribution,’” Hersh said.  “This means that a fixed amount of funds were distributed to a certain number of members.  Due to the limited availability of records, we worked with class counsel to the last possible minute as they determined the status of possible members.”

Hammer went on to summarize events surrounding his clients’ sudden termination. “AB&C Group, Inc. operated two inbound call centers as well as a distribution warehouse until its unexpected shutdown on March 14, 2008. Hundreds of employees were told to gather their possessions and leave the premises - many without having been paid their final three weeks of pay. The doors were simply locked behind them and the facilities abandoned.”

Hammer, Ferretti & Schiavoni took the lead and successfully navigated through bankruptcy court, federal and state court lawsuits to recover unpaid wages and liquidated damages for the former employees. Hammer, Ferretti & Schavoni is a law firm based in Martinsburg, WV that has served as lead class counsel in many class action cases since its founding in 1992. Its areas of emphasis include unlawful discrimination , wage and hour issues, car & truck crashes, and medical malpractice.

HBS Class Action Administration is a litigation support firm that assists the legal community with class action logistics, tax reporting, and settlement management. Since 2005, HBS has distributed over $15,000,000 to over 12,000 to class members, primarily in employment-related settlements.

For more information regarding this news event: Please contact Mr. David Hammer of 304 264-8505 or Brett Hersh at 304 267-2594.

Brett Hersh's avatar
  • Author: Brett Hersh
  • Bio: Brett Hersh, EA, MBA, is the owner of HBS TAX & Small Business Experts. He is an Enrolled Agent (EA) with the IRS and licensed by the US Treasury Department to prepare all tax returns and represent taxpayers before the IRS for audits, collections and appeals. He is also Dave Ramsey’s ELP for Tax and Accounting, a continuing education instructor for tax professionals through Lorman Education, and a local speaker/presenter on the topics of tax and business growth. He can be reached at (304) 267-2594.