Employment law case analysis – case 6
Arthur Andersen had 27,000 employees in the U.S. prior to the collapse of Enron. When the SEC investigated Enron, it discovered that the Houston office of Andersen, which worked for Enron, shredded thousands of documents related to the investigation. The Department of Justice indicted Andersen for obstructing justice. Many clients quit using Andersen, so its revenues collapsed. Consequently, Arthur Anderson laid-off large numbers of employees. A group of employees sued, contending that Andersen violated the Worker Adjustment and Retraining Notification Act (WARN) by not providing 60 days notice.
