Mar 3, 2010
Former employees of Duraco Products in Streamwood will file a class action lawsuit tomorrow seeking hundreds of thousands of dollars in back wages they allege were stolen over the past two years.
Thirty-one plaintiffs will file suit against Duraco owners Kevin Lynch and Michael Lynch, the Chicago Workers Collaborative announced. The plaintiffs will join lawyers and supporters in a press conference at 11 a.m. tomorrow in the Federal Plaza at 230 S. Dearborn.
Last week Newstips reported that a bankruptcy judge had ordered Duraco into Chapter 7 bankruptcy, closing the factory, and that workers charged that the company “systematically stole wages” through months of delayed and partial payments and bounced checks.
An attorney for the Working Hands Legal Clinic told the Sun Times that Duraco workers were victims of fraud and that an examination of 11 former employees’ records indicated they were owed about $230,000.
Plastics News reported that Duraco had sought Chapter 11 protection in November, 2008, shortly after its landlord filed an eviction notice, and that landlord asked that the company be moved into Chapter 7 protection on February 9, claiming the company owed over $2 million in rent.