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Former Fresh & Easy seeks approval of $2 million settlement agreement
By Kali Hays
New York, March 12 - Old FENM Inc., formerly Fresh & Easy Neighborhood Market Inc., is seeking preliminary and final approval of a class-action settlement agreement between the company and former employees alleging violations of California wage and hour statutes, according to a Tuesday motion filed with the U.S. Bankruptcy Court for the District of Delaware.
If approved, a settlement payment not to exceed $2 million will satisfy $61.43 million of "disputed, contingent, liquidated proofs of claim," the motion stated.
Under the proposed settlement, the four class representatives will receive $7,500 each, all other eligible claimants will receive a portion of their gross wages, and the company will pay a $10,000 fine to the State of California Labor & Workforce Development Agency.
The agreement also stipulates a confidentiality restriction, which does not allow specific facts regarding the settlement to be published by class members or class counsel.
While the company denies any violations of the statutes, it recognizes the "significant risks and costs to the estate if these claims were to be litigated."
The company also stated that only a settlement with the class representatives "will provide the finality needed to allow the debtors and committee to consummate a confirmable plan that is expected to pay settling creditors, including class members who do not opt out of the settlement agreement, in full on their agreed claims."
A hearing is scheduled for April 1.
Fresh & Easy, a Wilmington, Del.-based grocery store chain, filed for bankruptcy on Oct. 1. The Chapter 11 case number is 13-12569.
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