Thelen Gets Sued, Again: Three Thelen associates and a staff member filed suit against the firm, seeking damages for lost wages under the federal WARN Act, according to The Recorder, via Law.com. The complaint alleges that Thelen, which will close its doors Monday, violated the WARN Act by not giving 60 days' notice prior to a mass layoff, failing to pay wages for 60 days following the layoff notice, and failing to pay for accrued vacation. This is at least the second potential class action filed in the past two weeks against the firm.
GM Has Another Option: General Motors has reportedly reviewed and ruled out the option of a traditional Chapter 11 filing. According to The American Lawyer, via Law.com, the automakers could consider the option of a “prepack,” - when debtor's counsel negotiate agreements with creditors prior to an actual filing for Chapter 11 protection.
Bayer Settles With Justice: The Associated Press, via Law.com, reports Bayer, a German medical conglomerate, will pay $97.5 million in a settlement with the Justice Department over allegations that it paid kickbacks to medical suppliers to increase sales of the company’s diabetes products. Bayer Healthcare makes electronic monitors and testing strips used to measure blood sugar levels.
Gates to Stay at Pentagon: It looks like President-elect Barack Obama will retain at least one member of President Bush’s Cabinet. The Washington Post reports Defense Secretary Robert Gates is close to an agreement to remain at the Pentagon for at least the first year of Barack Obama's presidency. Obama has said he expects to have at least one Republican in his Cabinet.