Delaware Court Affirms Refusal to Extend WARN Act Liability to Private Equity Sponsor

7 October 2014
View Client Update

Key takeaways:

  • Affirming an earlier decision of the Delaware Bankruptcy Court, the United States District Court for the District of Delaware recently held that a private equity sponsor was not liable for its portfolio company’s alleged violations of the WARN Act.
  • The client update discusses a number of precautions private equity funds and other investors with portfolio companies in distress can take to minimize the risk of “single employer” liability under the WARN Act.