Sun Pharmaceutical Industries is facing a class action suit over the closure of the unit's Caraco facility in Michigan six years ago. The case pertains to Sun Pharma's US subsidiary Caraco.
The US Circuit Court of Appeals ruled that Caraco did not comply with norms while closing two of its units in Detroit and Farmington Hills. The case is based on the fact that Caraco did not issue a Federal Worker Adjustment and Retraining Notification Act (WARN) notice to its employees until 11 days after the plants were closed.
The purpose of the law is to provide time for workers, their families and communities to adjust with plant closings and mass layoffs. "Advance notice provides workers and their families some transition time to adjust to the prospective loss of employment, to seek and obtain alternative jobs and, if necessary, to enter skill training or retraining that will allow these workers to successfully compete in the job market", said the United States District Court that accepted the suit.
The case filed by James Calloway, one of the nearly 600 people who were laid off, has alleged that Sun did not adhere to labor laws while shutting the plant.