The Messenger, a defunct media startup, resolves class action lawsuit with former employees for …

The defunct media startup known as The Messenger, founded by Jimmy Finkelstein, has recently settled a class action lawsuit with former employees for a total of $4.5 million. This settlement marks the conclusion of a legal battle that ensued after the abrupt closure of The Messenger, leaving nearly 300 journalists unemployed and without severance pay.

The class action lawsuit was initiated by senior producer Pilar Belendez-Desha on behalf of approximately 275 impacted employees following the site’s sudden shutdown. News of The Messenger’s closure was delivered by Finkelstein in January of the previous year, leaving employees stunned as they were informed that no severance pay or insurance benefits would be provided. Despite Finkelstein’s attempts to secure additional funding to sustain the publication, the ultimate decision to shut down was made due to financial constraints.

Throughout the legal proceedings, former employees alleged that The Messenger violated the New York Worker Adjustment and Retraining Notification Act by failing to give ample notice before shutting down. The lawsuit sought to obtain wages, health insurance premiums, accrued vacation and holiday pay, as well as two months’ worth of benefits post-closure. After months of negotiations, a settlement was agreed upon, and a joint motion for approval was filed in the Southern District of New York.

It is important to note that the settlement agreement does not guarantee immediate payment to the former employees, as JAF Communications is currently undergoing a liquidation process in Delaware state court. The settlement details indicate that any available proceeds, up to $4.5 million, will be pursued through this liquidation process to compensate the employees. Despite JAF Communications denying any violation of labor laws, the settlement agreement has been reached to resolve the matter.

In a notice to the plaintiffs, it was emphasized that the settlement does not ensure payment, as efforts are being made to recover funds from the company’s assets. The settlement agreement involves a consent judgment for $4.5 million against JAF Communications, allowing the Class Counsel to attempt to enforce and recover the funds during the liquidation process. This cautious approach is outlined to manage expectations regarding the distribution of the settlement amount among the former employees.

The resolution of the class action lawsuit between The Messenger and its former employees for $4.5 million signifies a step towards closure for those affected by the sudden shutdown of the digital media startup. The ongoing liquidation process of JAF Communications will determine the actual distribution of funds to the former employees, highlighting the complexities involved in settling such cases post-bankruptcy.