The Swiss battery manufacturer Alevo arrived in Cabarrus County, NC three years ago with promises to create hundreds of jobs. The state of North Carolina promised up to $2.6 million in Job Development Investment Grant money. The company gained attention early this year when a Russian billionaire with a connection to President Donald Trump emerged as a new investor and installed former associates at the company, reported the Charlotte Observer.
Investors or no, by August of this year Alevo, unable to compete in a crowded field, announced that it was declaring bankruptcy, and cutting all of the 290 jobs it had created. Alevo USA and Alevo Manufacturing, both based in Concord, filed petitions in federal bankruptcy court in the Middle District of North Carolina. Alevo said it will seek an orderly liquidation in Chapter 11 and hopes to “maximize value to pay their creditors,” according to the Charlotte Business Journal. Chief Financial Officer Peter Heintzelman said it was “a difficult, but necessary decision.”
On the same day as the announcement, a laid-off Alevo employee named Jerome Singleton filed a lawsuit in federal bankruptcy court alleging the company violated a law requiring it to give workers 60 days’ notice of a downsizing The suit seeks class-action status on behalf of similarly situated former Alevo employees. Singleton worked as a project manager at the company’s Concord facility. The lawsuit says he had received no advanced notice of the layoff or any explanation.
According to the Observer, The lawsuit alleges the company did not provide required notice under the Worker Adjustment and Retraining Notification Act and asks the federal bankruptcy court for “statutory remedies, as well as unpaid wages.” Twenty more employees have expressed their desire to participate in the suit. In September, the Observer reported that the employees were seeking $3.7 million in unpaid wages and compensation.
Richard Manger, principal of Manger Law Firm, has extensive experience in litigation and settlements, with a focus on personal injury and workers’ compensation law. We are proud of the strong relationships of loyalty and trust we develop with our clients. We go above and beyond to achieve the best possible outcome in your case. You can contact Richard Manger via email at email@example.com, or by calling (336) 882-2000.