A Warning On WARN Act Exposure For Equity Investors

Law360, New York (December 18, 2013, 8:31 PM ET) -- On Dec. 10, 2013, the U.S. Court of Appeals for the Second Circuit issued an opinion in Guippone v. BH S&B Holdings LLC[1] that should serve as a warning to equity investors whose subsidiaries do not close a plant or lay off workers in compliance with the Worker Adjustment Retraining and Notification Act.[2] In certain circumstances a parent company and its subsidiary may be considered a single employer under the WARN Act. Thus, a private equity sponsor or holding company could become ensnared in its operating...
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