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RadioShack

This lawsuit seeks to recover unpaid overtime compensation for Store Managers who worked for RadioShack Corporation (“RadioShack”). The managers allege that RadioShack violated Pennsylvania law by paying them a salary plus "halftime" pay (instead of full time-and-one-half pay) for hours worked over 40 in a week.

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Case Updates

Apr 5, 2013

Today, our firm, along with co-counsel Nichols Kaster, PLLP started a class action lawsuit by filing a Complaint against Defendant RadioShack Corporation with the Philadelphia Court of Common Pleas. The lawsuit alleges that RadioShack violated the Pennsylvania Minimum Wage Act by paying certain Pennsylvania employees under the federal “fluctuating workweek” described at 29 C.F.R. § 778.114. Under the fluctuating workweek, employees receive a salary plus overtime premium pay equal to “one-half” their hourly rate. According to the Complaint, this method of calculating pay violates Pennsylvania law which requires that employees receive overtime compensation “not less than one and one-half times” the employee’s regular pay rate for all hours worked over 40 in a workweek. You can access a copy of the Complaint below. If you would like additional information about the lawsuit and whether you are covered or potentially eligible to join, feel free to call our office at (215) 884-2491.

May 1, 2013

Today, RadioShack filed an Answer to the Complaint. In the Answer, RadioShack denies violating the law and asserts that its pay practices are legal. A copy of the Answer is available below.

May 9, 2013

Today RadioShack filed a Notice of Removal asking that this case be transferred from the Philadelphia Court of Common Pleas to the United States District Court for the Eastern District of Pennsylvania. A copy of RadioShack’s Notice of Removal is available below.

Sep 23, 2013

Today the Honorable Mitchell S. Goldberg held a scheduling conference in which he issued an order establishing a briefing schedule on the following legal question: Does RadioShack’s use of the fluctuating workweek method for calculating overtime pay violated the Pennsylvania Minimum Wage Act? Briefing on this issue is due October 24, 2013.

Oct 24, 2013

Today we filed our legal papers arguing that RadioShack’s use of the fluctuating workweek method for calculating overtime pay violates the Pennsylvania Minimum Wage Act. A copy of our motion can be accessed below.

Nov 7, 2013

Today we filed our opposition brief to RadioShack’s motion for judgment on the pleadings arguing that its use of the fluctuating workweek method for calculating overtime pay violates the Pennsylvania Minimum Wage Act. A copy of our opposition package is available below.

Jul 10, 2014

Today we are pleased to announce that Judge Mitchell S. Goldberg issued an order and opinion finding that RadioShack’s use of the fluctuating workweek method for calculating overtime pay violates the Pennsylvania Minimum Wage Act. This is a significant development in this case. A copy of the Court’s opinion is available below.

Nov 24, 2014

Today Judge Goldberg issued an order certifying this case as a class action on behalf of: All individuals employed by RadioShack in Pennsylvania who, during any workweek since April 5, 2010, had their overtime pay calculated pursuant to the fluctuating workweek method. A copy of the Court’s order is below.

Dec 17, 2014

Today we filed an Unopposed Motion for Preliminary Approval of the Class Action Settlement with the Court. The motion concerns RadioShack’s agreement to settle this case as a class action for a total of $700,000.00. If granted, notice of the settlement will be sent to eligible class members and a final approval hearing for the settlement will be scheduled by the Court. A copy of this motion can be accessed below. It is important to note that no payments will be made under this settlement unless the Court grants final approval. If you have any questions, please call us at (215) 884-2491.

Dec 29, 2014

Today Judge Goldberg granted Plaintiff’s Unopposed Motion for Preliminary Approval of the Class Action Settlement. A copy of this order is below. A final approval hearing has been scheduled for February 24, 2015. It is important to note that no payments will be made under this settlement unless the Court grants final approval. If you have any questions, please call us at (215) 884-2491.

Feb 11, 2015

Today the parties participated in a conference with Judge Goldberg concerning RadioShack’s recent voluntary petition for bankruptcy with the United States Bankruptcy Court for the District of Delaware. As a result of this petition, the final approval hearing of the settlement that was previously scheduled for February 24, 2015 was canceled and this case will be transferred to the Bankruptcy Court in Delaware for further proceedings. Because the final approval hearing is canceled, none of the proposed payments under the settlement will be made. Copies of the Court’s orders are below. Please feel free to call our office at (215) 884-2491 if you should have any questions.

Jul 27, 2015

Today we filed a claim for over $7,000,000.00 with the United States Bankruptcy Court for the District of Delaware on behalf of the certified class of 569 Pennsylvania employees covered by the case. This amount included unpaid wages, pre-judgment interest, attorney’s fees, and litigation expenses. A copy of this claim form is available below. It is important to note that this claim merely outlines the best case scenario for the certified class and does not reflect whether any money will be able to be recovered for the class as part of these bankruptcy proceedings.

Feb 10, 2016

Today, the Honorable Brendan Shannon of the United States Bankruptcy Court for the District of Delaware issued an order approving a stipulation with the Liquidating Trustee in this case. Under this stipulation, the Liquidating Trustee agreed to a $5,500,000.00 value for the claim that was filed on behalf of the certified class of Pennsylvania employees covered by this case. Under the stipulation, the $5,500,000.00 shall be allocated as follows: (i) a total general unsecured claim of $3,666,666 shall be allowed for Pennsylvania Store Managers that were covered by the original Settlement of the Lawsuit; and (ii) a total general unsecured claim of $1,833,334 shall be allowed as to Class Counsel for all attorneys’ fees and expenses associated with the Lawsuit. The $5,500,000.00 Proof of Claim is among thousands of other unsecured claims against RadioShack. Once the “secured creditors” and the “priority creditors” are paid pursuant to a plan approved by the Bankruptcy Court, any remaining funds will then be distributed to the thousands of other unsecured claimants. It is not certain if or when any distribution will be made from RadioShack’s bankruptcy. It is also not known what percentage of the value of those unsecured claims, if any, will be ultimately paid. A copy of the Court’s order is available below. If you have any questions about the status of the RadioShack case, please call office at (215) 884-2491.

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