Bankrupt Sonder Hit With WARN Act Suit Over Wind-Down Layoffs

A former employee of Sonder Holdings Inc. sued the bankrupt global hospitality company, alleging it unlawfully laid off 1,000 workers without proper notice.

Rasheeda Herring, the named plaintiff, filed a complaint Monday in the US Bankruptcy Court for the District of Delaware on behalf of a proposed class. She alleged that Sonder terminated her and about 1,000 other employees without the required 60-day advance notice, violating the Worker Adjustment and Retraining Notification Act.

The WARN Act requires large employers to give advance notice of mass layoffs or closures. Violations can result in liability for back pay and benefits.

The complaint ...