Business

Ex-Staff Sue Defunct The Messenger Over Severance and Benefits

Feb 2, 2024 1 min read

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A class-action lawsuit has been filed against The Messenger, a digital news startup, by its former employees following the company's abrupt shutdown and layoff of all 300 staff members. The legal action, led by former senior producer Pilar Belendez-Desha, alleges that The Messenger violated the Worker Adjustment and Retraining Notification (WARN) Act, which requires employers to provide at least 60 days' advance written notice of mass layoffs. The plaintiffs are seeking compensation for unpaid wages, including salary, commissions, bonuses, as well as accrued holiday pay, vacation, health, and life insurance premiums for the 60 days following their terminations.

The Messenger, founded by Jimmy Finkelstein, ceased operations after less than a year of operation, citing an inability to secure enough capital to become profitable. The shutdown is part of a distressing trend in the news industry, which has seen significant layoffs in recent times. The lawsuit not only challenges the company's compliance with federal labor laws but also raises concerns over the stability and viability of news startups in a challenging economic environment for the journalism industry.

#tech #lawsuits #unemployment #startups

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