Alatrade Foods $500,000 WARN Act Class Action Settlement

Individuals who worked at the Alatrade Foods Phenix City, Alabama processing plant and whom the company terminated due to a mass layoff or the plant closing between February and August 2025 may qualify to submit a claim for a payment from a class action settlement.

Alatrade Foods Inc. agreed to pay $500,000 to settle a class action lawsuit alleging it violated the federal Worker Adjustment and Retraining Notification Act. The plaintiff claimed Alatrade failed to provide the required 60 days’ advance notice before conducting a mass layoff or closing its Phenix City facility.

Who is eligible for a class action payout?

Class members must meet the following criteria:

• They worked at the Alatrade Foods Phenix City, Alabama processing plant.
• Their employment ended due to a mass layoff or plant closing as defined by the WARN Act.
• Alatrade terminated their employment between February and August 2025.

How much are settlement payments?

Cash payment: Class members can submit a claim to receive a payment from the net settlement fund. Alatrade Foods will make payments as back pay wages with standard payroll taxes withheld. It will determine the payment amount amount by:

• The number of days the employee was laid off after receiving less than the required 60-day notice
• Any days worked between the notice and the actual layoff date
• Any days worked upon recall after layoff
• The equivalent days of any severance paid upon layoff

How to claim a class action rebate

To receive a settlement payment, class members can file a claim online or complete the paper claim form included with their settlement notice and mail it to the settlement administrator.

Settlement administrator's mailing address: Perry v. Alatrade Foods Inc., c/o CPT Group Inc., PO Box 19504, Irvine, CA 92623

Class members must submit their claim form online or postmark it by Aug. 5, 2026.

Required claim information

To file a claim online, class members must provide the CPT ID and passcode from the settlement notice.

Payout options

• Electronic payment
• Paper check mailed to the address provided

Settlement fund breakdown

The $500,000 settlement fund will include:

• Settlement administration costs: Up to $17,500
• Attorneys' fees: Up to $166,666.67
• Attorneys' costs: To be determined
• Service award to class representative: $1,500
• Payments to approved claimants: The remainder of the fund

Important dates

• Final approval hearing: July 23, 2026
• Deadline to opt out: Aug. 5, 2026
• Deadline to file a claim: Aug. 5, 2026

When is the Alatrade Foods employee settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged Alatrade Foods Inc. violated the WARN Act by failing to provide at least 60 days’ advance notice before a mass layoff or plant closing. The WARN Act is a federal law designed to protect workers by requiring employers to give advance notice of significant layoffs or plant closures.

Alatrade denies the allegations but agreed to settle the case to avoid the cost and uncertainty of continued litigation and a possible trial.

Sources

1. Class notice
2. Settlement website
3. Settlement agreement