Roughly 1,650 former employees of Mortgage Lenders Network will divide a $2.7 million settlement from the bankrupt subprime lender under a settlement approved by a Delaware judge. The privately held Connecticut B&C lender failed to provide the required 60-day warning notice to employees that it would close, said their lawyer, Charles Ercole of Klehr, Harrison, Harvey, Branzburg & Ellers of Philadelphia. The lender had argued in bankruptcy court that the federal Worker Adjustment and Retraining Notification Act allows companies not to give the notice if business conditions change too quickly. Former workers could receive a check from the bankruptcy court by late summer.
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