Improperly Fired Employees from David Stern’s Firm Get Preliminary Approval to Sue as a Class

On the basis that they were not given the property 60 days notice required by the federal Worker Adjustment and Retraining Notification Act (WARN), a federal magistrate has recommended about 1,000 former employees of attorney David Stern’s foreclosure processing company be allowed to sue a class in a lawsuit. US District Judge Ursula Ungaro will review the report and make a final decision whether the lawsuit against Stern, DJSP (David J. Stern Enterprises) and associated entities will move forward as a class action. She ruled in April that former employees could sue Stern personally under the Act.

Publicly traded DJSP had nearly 1,200 lawyers and support staff, but the business collapsed after loan-servicer clients abandoned Stern amid news reports of robo-signing and allegedly doctored documents used to expedite foreclosures. Stern shut down his foreclosure law practice in March.

Four former DJSP employees filed the suit in November, claiming they were given insufficient notice when they were let go. They sought back pay and class certification.

U.S. Magistrate Judge Ted Banstra said Wednesday in his 13-page report that the fired workers have the numbers as well as common claims to go forward as a class.

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