Axed Workers Sue American Home Mortgage

Law360, New York (August 10, 2007, 12:00 AM EDT) -- A group of American Home Mortgage Corp. employees who were axed last week have filed a putative class action against the beleaguered home lender for back pay, arguing they were let go without fair warning.

The employees, who were fired as part of mass layoffs ordered by AHM before it filed for bankruptcy on Monday, claim the firm violated their rights under the Worker Adjustment and Retraining Notification Act.

They allege the Mellville, N.Y. lender, which laid off one-third of its workforce, was obligated under the...
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