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Ifrah Law Negotiates Complete Withdrawal of All Counts of Possible Class Action Suit

A former contractor for a long standing firm client filed a class action suit in the Eastern District of Virginia (the famed “Rocket Docket”) based upon alleged tax and Fair Labor Standard Act infringement claims in connection with contract services purportedly provided by the plaintiff to our client in connection with a government contract for security services at an overseas military base.

Ifrah’s team, led by partner George Calhoun, first succeeded in attaining a swift dismissal of the class action tax claims based on the inapplicability of the tax statute at issue to purported employee misclassification.  The plaintiff also was forced to amend its complaint to eliminate its employment law claims because the FLSA does not apply to contractors or employees based overseas. The client was thus relieved of the initial threat of a large scale and costly class action suit.

The plaintiff nonetheless continued to pursue the suit against our client based on an individual breach of contract claim. Through the effective discovery conducted by Ifrah’s litigation group, we were able to limit any possible claims by the plaintiff.  Most tellingly, we established that the plaintiff had made – and was making – inconsistent claims in his discovery responses and in a lawsuit brought against a third party.

Based on these facts, Mr. Calhoun persuaded opposing counsel to dismiss all claims, ultimately relieving our client from any financial or legal liability.

 

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Tuesday, Apr 25, 2017

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