Taylor Bean & Whitaker Sued Over Layoffs

Troubled mortgage banker Taylor Bean & Whitaker has been hit with a class action law suit on behalf of 1,000 former employees who found themselves jobless last week when the lender's fortunes took a turn for the worse. The law firm of Outten & Golden LLP sued the non-bank mortgage firm in U.S. District Court for the Middle District of Florida, seeking back pay and health care benefits under the Worker Adjustment and Retraining Notification Act. The firm says the sudden loss of pay and benefits are "causing many employees immense hardship." Meanwhile, Bank of America has sued the troubled Colonial BancGroup — the nation's largest warehouse provider — seeking the return of $1 billion in collateral. BoA is the collateral agent for $1 billion in loans made to Ocala Funding LLC, a commercial paper vehicle sponsored by TBW. Taylor, Bean & Whitaker — which had hoped to rescue Colonial — is expected to file for bankruptcy protection soon. (See related story on this website).