New Century sued by ex-employees
From Times Wire Services
New Century Financial Corp., an Irvine-based sub-prime lender that is being liquidated, was sued by a group of more than 120 former employees contending that a $43-million trust fund should be used to pay their deferred compensation.
The employees are asking the U.S. Bankruptcy Court in Wilmington, Del., to treat their suit as a class action on behalf of more than 500 former New Century employees.
The suit says the pay plan is protected under the Employee Retirement Income Security Act. The employees want the court to rule that $43 million now held by a bank in a trust may only be used for payments to the employees.
