PacSun – Judge Silverstein Grants Class Certification

On June 22, 2016, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court ruled on a motion to for class certification in the PacSun bankruptcy, Case No. 16-10882.  In 2011, two plaintiffs filed actions under the California Labor Code Private Attorneys General Act ("PAGA"), alleging violations of California wage and hour laws.  One of the Plaintiffs was granted class certification in February, 2016.  After PacSun filed for bankruptcy, these plaintiffs moved for authority to file bankruptcy proofs of claim as representatives of the PAGA class for the class.  The "Opinion" is available here.

Because of the clarity and length of the Opinion, I have included only a cursory summary here.  However, it is worth noting that instances in which bankruptcy courts approve of class treatment for class-action claims is not terribly common.  Often, the Court will rule that the bankruptcy claims process is just as likely to provide adequate notice and recovery to