The class action department of McLaughlin & Stern, LLP is pleased to announce a $6.25 million settlement for approximately 1700 current and former employees of RiverBay Corp. (AKA Co-op City). On February 3, 2015, the Honorable Judge John G. Koeltl of the Southern District of New York granted preliminary approval of the settlement and notice has been issued to all current and former employees who worked at Riverbay Corp. from April 9, 2007 to the present. RiverBay Corp. and the co-defendant, Marion Scott Real Estate Inc., manage and operate Co-op City which is located in the Bronx. Co-op city is the largest cooperative housing development in the world and is home to approximately 65,000 residents.
The class action lawsuit, filed as Ramirez, et. al v. Riverbay Corp., et. al, 13-CV-2367 (JGK)(GWG), alleged wage and hour violations under the Fair Labor Standards Act and New York Labor Law. Specifically, the Complaint asserted that Defendants denied straight and overtime compensation to hourly employees by: (1) paying hourly employees according to their scheduled hours rather than the actual time they spent clocked in and performing work-related duties; (2) offering hourly employees compensatory time off in lieu of overtime payments in cash; and (3) failing to include the nighttime differential pay for work at night into the regular rate of pay, thereby allegedly resulting in overtime not computed at the proper time and one-half rate.
This settlement comes after nearly two years of highly contested and adversarial litigation and represents a great victory for all class members in recovering unpaid compensation and punitive damages to which they are rightfully owed. Inquiries regarding the settlement may be made to Brett R. Gallaway at (212) 448-1100.