The 2nd Circuit has rebuffed an attempt by fired National Finance Corporation workers to hold Bear Stearns liable for not giving them advance written notice of their impending terminations. The court said that workers must show that a creditor was "responsible for operating the business as a going concern" rather than acting only "'to protect [its] security interest' and 'preserve the business asset for liquidation or sale.'" An attorney for Bear Stearns said the decision should "give comfort" to lenders.
2nd Circuit: Lender Bear Stearns Not Required to Provide Notice of Firings
New York Law Journal
September 5, 2007