Delta Financial's former workers sue company for back-pay

By Reshmi Basu

New York, Dec. 19 - Former employees of Delta Financial Corp. filed a lawsuit against the company for termination of employment, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the class-action complaint, three former employees allege they were laid-off as part of mass layoffs or plant closings without a 60-day advance notice, as required by federal law.

Therefore, the plaintiffs, on behalf of other similarly situated persons, are seeking to recoup back-pay and benefits.

Delta Financial, a Woodbury, N.Y., specialty consumer finance company, filed for bankruptcy on July 17, 2007. Its Chapter 11 case number is 07-11880.

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