A notable development recently occurred in the longstanding legal case involving former employees of the defunct reverse mortgage lender known as Live Well Financial. The court finally approved the class-action lawsuit settlement, marking the official end of the legal process and opening up the pathway for compensation.
For those unfamiliar with the story, Live Well Financial was a major player in the reverse mortgage sector. Their untimely closure in 2019 left many employees out of jobs without notice. Live Well was accused of failing to provide the necessary 60-day notice mandated by the Worker Adjustment and Retraining Notification (WARN) Act prior to closing down. Instead, the company abruptly shut down, leading to job losses without any forewarning.
The affected employees decided to take legal action. Together, they launched a class-action lawsuit against the company, charging Live Well Financial with violating the federal WARN Act. The law requires companies with over 100 employees to provide at least 60 days warning of business closings and mass layoffs.
The primary objective of the WARN Act is to protect employees and their families, giving them ample time to seek other employment opportunities or arrange for alternative income streams before their jobs disappear. It is a significant law designed to limit the widespread damages caused by sudden job losses.
Months after the layoff, the laid-off Live Well employees banding together to take legal action began reaping the benefits of their decision. They had the court’s nod of approval to proceed with their class action claim. The lawsuit moved forward, and finally, a much-awaited settlement has graced the scene.
In total, the initial claim sought $1.4 million in damages, equivalent to the 60-day pay and benefits that should have been provided under the WARN Act. However, final approval has now been granted for a settlement amount of $975,000. This amount, though lower than what was initially sought, will finally bring closure to the employees who found themselves unexpectedly jobless over two years ago.
Further details of the settlement suggest that the $975,000 will cover both the stipulated damages and the attorney fees. As a result, around 106 former Live Well employees will each receive an average payout of approximately $7,292. The amount will vary based on previous salary and tenure at Live Well, with those having longer tenures and higher pays likely to receive more.
It is noteworthy that no opposition was raised by Live Well’s bankruptcy trustee to the settlement—an essential green light needed to finalize the settlement and proceed with payment distribution. The trust also did not oppose the request for attorney fees, boding well for the affected employees.
Despite the lower settlement amount, the conclusion of the legal proceedings is a major victory for the ex-employees. Live Well’s closure was a shock to many, potentially leaving employees and their families in a financial lurch. With this settlement, they can start to move towards financial recovery, albeit a late one.
Due to the company’s abrupt closure, employees were left in the dark, leading to an essential part of the workforce suddenly out of work and without a safety net. The settlement comes as a beacon of hope for those affected, a source of financial relief and a measure of justice served.
This victory shows the importance of laws such as the WARN Act and sets a precedent for other firms in the future who may otherwise consider bypassing these important labor laws.
While the settlement marks the end of a rather unsavory chapter in the history of Live Well Financial, it cannot offset the unfortunate events resulting from the company’s sudden closure. Hundreds of employees were left jobless, unable to prepare for what was to come. The settlement brings financial compensation, but it also emphasizes the profound importance of ethical business practices that respect employees’ rights.
Another development in the Live Well closure story is the ongoing criminal case against Live Well’s former CEO, Michael Hild. Hild faces fraud charges for his alleged role in a bond scheme. The allegations, unrelated to the closure of Live Well and subsequent disputes, have further tarnished Live Well’s reputation.
Hild stands accused of masterminding a scheme to inflate bond prices, which led to millions of dollars in losses for Live Well’s bondholders. The case is still pending and Hild has maintained his not guilty plea.
While this criminal case proceeds, the class-action lawsuit settlement comes as great relief for the former employees of Live Well who have had their lives upended in various ways.
In conclusion, the saga of Live Well Financial serves as a clear reminder of the necessity of labor regulations and laws like the WARN Act. The abrupt closure of the company was a stark illustration of how violations of these laws can prove devastating for employees.
The finalizing of the lawsuit marks a significant victory for those employees affected by the abrupt company closure. For them, the settlement serves as vindication and as testament to their rights as employees. In fact, it brings a fitting close to a long-fought legal battle, indicating a win for the “little guys” in their fight against corporate inconsideration.
Though this case has been a trying period for the ex-employees, at least they can take solace in the fact that, thanks to the court’s final approval of the settlement, their trials have not been in vain. While it may not fully remedy the situation caused by Live Well’s untimely closure, the settlement nonetheless provides overdue compensation, a sense of closure, and ultimately a semblance of justice.
