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Expert Analysis

Case Study: D'Amico V. Tweeter Opco

Law360, New York (November 10, 2011, 12:42 PM EST) -- We regularly caution financial sponsors of failing companies about "responsible person" exposure that their entities, their designated directors and the operating management of the failing company may face. The list of exposure topics includes wage-related obligations, withheld benefit items, withheld and collected taxes, and fiduciary liability under ERISA. A recent decision by the influential U.S. Bankruptcy Court for the District of Delaware adds liability under the Worker Adjustment and Retraining Notification Act of 1988 (the "WARN Act") to the list of sponsor concerns...

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