Sep 09
8
Just when I thought ViableVRS was seeing the light at the end of the tunnel when they got snapped up (pun intended) by Snap!VRS, Viable gets slammed by a federal class action lawsuit. Ouch. And apparently it’s not the only one, there’s another lawsuit pending that I wasn’t aware of. Interesting. I almost feel bad for Viable…
I’ll just quote the article so you get a general picture of it:
Employees sue Viable over wages
List of plaintiffs in class-action suit to grow, alleging state, federal law violations
by Kevin James Shay | Staff Writer
Rockville deaf-services company Viable has been hit with a class-action lawsuit filed by former and current employees seeking back payment of wages, interest, compensatory damages and other relief. The litigation comes not long after Viable made an agreement to be bought by a New York competitor.
…
The lawsuit adds to the woes of Viable, which has been under a cloud since a June visit by federal investigators. Viable CEO and founder John Yeh faces a separate trial next month in Silver Spring on charges he did not pay regular wages to an employee, and others have filed complaints against Viable with the employment standards unit of the Maryland Department of Labor, Licensing and Regulation’s Division of Labor and Industry.
The class-action lawsuit lists 17 plaintiffs, and that number was expected to grow to 42 by the end of Wednesday, said Nicholas Woodfield, a principal with the Washington, D.C., law firm Employment Law Group and an attorney for the plaintiffs. He said that Viable, Yeh and other officers were served with the lawsuit Tuesday and have a little less than three weeks to respond. The other Viable officers named as defendants are Mary Yeh, John Yeh’s wife; and Joseph Yeh, a brother of John Yeh.
The lawsuit alleges that Viable and the officers violated the federal Fair Labor Standards Act of 1938, as well as Maryland wage payment and other laws.
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Viable recently entered into a purchase agreement with Snap!VRS, a Pearl River, N.Y., video relay service company. Whether Snap!VRS will bear any responsibility in the class-action lawsuit "depends on the nature of the transaction between Snap!VRS and Viable," Woodfield said.
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"There are large issues that remain to be resolved with Viable," Woodfield said. "But the facts are clear that Viable and the named officers failed to meet their payment obligations to their employees."
In the Montgomery County case, Yeh faces a trial Oct. 19. The plaintiff, Mary K. Moylan of Catonsville, said that she was laid off in early July and was not paid for several weeks. Her claim was for $7,450.
(Link to Source – Gazette.net [The Gazette])
Basically, the employees (both current and former) are pissed at not getting paid, and have decided to force Viable’s hand. No word on whether Snap!VRS will assist with this latest bout of legal troubles, or whether Viable is on their own for this one. I considered contacting Viable and Snap!VRS for comment, but saw this part from the same article I quoted earlier:
Maureen Ellenberger, Snap!VRS vice president of marketing, said in an email Thursday that the company cannot comment on pending legal matters.
"That said, Snap!VRS is committed to finalizing the acquisition of Viable over the next few months and confident that it will result in a plan that will be both fair to employees and beneficial to customers," Ellenberger said.
In a previous e-mail, she had said, Snap!VRS "has taken over payroll for current Viable employees as well as health and life insurance payments."
(Link to Source – Gazette.net [The Gazette])
So that’s already been done. Saves time for me. Based on Maureen Ellenberger’s response, it seems Viable employees will be now paid regularly. However, there’s no word on the back pay owed to both former and current employees, and due to the ongoing class action lawsuit, I doubt there’ll be more forthcoming until that lawsuit has been completed.
Tip for Viable: you should have declared bankruptcy PRIOR to going into buyout negotiations with Snap!VRS. This way, you’re protected from lawsuits such as the one you’re going through. Snap!VRS, you could have made bankruptcy a conditional requirement for buyout of Viable so you would have not had to deal with this hassle. Standard business practice. Anyhow, good luck to you both—I truly do hope you guys can work this out and move on. The VRS industry needs more innovation, less legal wrangling. Yeehaw!
Posted in Deafness The Corporate Scene by .
