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First Guaranty Mortgage Corp. Hit With Class Suits Over Layoffs

June 30, 2022, 6:04 PM

First Guaranty Mortgage Corp., which filed for chapter 11 bankruptcy protections on Thursday, is facing multiple would-be federal class actions by former employees, after the lender laid off most of its workforce.

Three lawsuits were filed in the US District Court for the Eastern District of Texas on Wednesday, along with a fourth in the US District Court for the District of Nevada, all alleging that FGMC violated the Worker Adjustment and Retraining Notification Act by failing to notify employees as soon as the June 24 layoffs were “reasonably foreseeable.” One of the lawsuits also names Pacific Investment Management Co. ...