Bankrupt solar company Solyndra has agreed to pay a $3.5 million settlement in a claim that it failed to notify employees of its last August, according to media reports.
About 1,100 employees lost their jobs without warning on Aug. 31, 2011, just days before the company filed for bankruptcy on Sept. 6. Employees sued the company that same day, asking for two months of wages and benefits.
Bloomberg reports that the settlement — proposed jointly by the solar manufacturer and its former employees — will resolve complaints that Solyndra failed to give a 60-day notice to employees, which is required under the Worker Adjustment and Retraining Notification Act.
In its settlement papers, Solyndra, which received a $535 million federal loan from the Obama administration, said the claims were “fair and well within the range of reasonableness,” according to Bloomberg.
Solyndra would have faced up to $15 million in damages, along with attorney fees, if the employees were successful in their claim, Bloomberg reports. In court papers, the solar company listed more than $850 million in assets and more than $860 million in debt.
The settlement must be approved in federal court, with the first of two hearings to be heard early next month.