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Settlement Proposed in Spansion WARN Act Class Action

This is a settlement for the Employment lawsuit.

San Franscico, CA: A proposed class action settlement has been reached in a lawsuit brought on behalf of former employees of Spansion Inc. whose employment was terminated on or around February 23, 2009. The settlement resolves claims that Spansion violated the California and federal Worker Adjustment and Retraining Notification Acts ("WARN" Act) by failing to provide terminated employees with adequate advance notification of the mass layoff. The WARN Act generally requires companies with 100 or more employees to provide sixty calendar day advance notification of plant closings and mass layoffs.

Under the proposed settlement, more than 750 former Spansion employees will receive a portion of an $8.568 million global settlement fund, with cash payments to be made directly to class members. Certain individuals will have the option of receiving a portion of their settlement benefits compensated through stock or a liquidated stock distribution. Class members include more than 600 terminated employees from the Sunnyvale, California location and more than 150 employees who were let go in Austin, Texas.

A preliminary approval hearing is scheduled for March 23, 2010. To find out more information about the settlement, visit

The lawsuit, entitled Cabreros and Refuerzo, et al. v. Spansion, LLC and Spansion, Inc., Adversary Proceeding No. 09-50409-KJC, was filed in the United States Bankruptcy Court for the District of Delaware.

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Published on Feb-19-10


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