Labor & Employment

Ex-Employees Sue Stern's Foreclosure Law Firm and Related Company Over Hundreds of Layoffs


After laying off hundreds of employees in the last few months, a law firm and related company known for their mortgage foreclosure work on behalf of lenders are now themselves the target of litigation.

The law offices of David J. Stern and a related processing company, DJSP Enterprises, didn’t comply with federal law when they axed workers en masse without providing 60 days’ notice and required benefits payments, ex-workers contend in a federal lawsuit, the South Florida Sun-Sentinel reports.

The suit, which alleges violations of the Worker Adjustment and Retraining Notification Act, was filed in federal court in Fort Lauderdale, the South Florida Business Journal reports

The Miami Herald says attorney Jeffrey Tew, who represents Stern, declined to comment on the suit but said Stern “adjusted the employees to reflect the workload.”

A U.S. Department of Labor page provides additional information about the WARN Act.

Related coverage:

ABAJournal.com: “With Foreclosure Co. Layoff Tally at 900, Lawyer David Stern Doffs CEO Hat, Returns to Law Firm”

Updated at 5:32 p.m. to include Miami Herald coverage.

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