It has been reported that there are seven legal firms having various roles in helping with the controversial bankruptcy filing of Solyndra. It seems in this case that the bankruptcy attorney is the only trade that will profit. Last month, Solyndra filed for Chapter 11 bankruptcy after failing to be able to compete with Chinese manufacturers in the solar industry making photovoltaic cells for solar power systems. After receiving $535 million back in 2009 and their $75 million loan in February from the Department of Energy, Solyndra had to shut its doors laying off 1100 employees. The employees of Solyndra have now filed a class-action lawsuit in the US District Court of Northern California Friday night, stating the company violated state and federal regulations, requiring companies to give the 60 days notice before laying off 50 workers or more. The complaint is asking for all unpaid wages, salaries, commissions, bonuses, holiday pay, vacation pay, 401(k) and pension benefits.
In a notice, representatives from Solyndra stated they were actively looking for funding right up to filing bankruptcy on August 31. The spokesperson stated, “We filed the WARN notice Wednesday but the reason for this is that we were actively seeking funding and really working up into the last-minute hoping to avoid making that announcement .“
With all this going on, federal lawmakers feel they have been misled about the company’s financial situation. This huge political firestorm is likely to come to a head this week when Solyndra CEO Brian Harrison and CFO Bill Stover will have to speak at a House Energy And Commerce Committee Hearing. Both of these gentlemen have hired counsel to represent them. It seems that the only winner here is going to be the different bankruptcy attorneys representing all the parties. It’ll be interesting to see how this bankruptcy all works out.