Bloomberg Law
March 21, 2023, 6:55 PM

American Car Center Sued Over Abrupt Layoffs Before Bankruptcy

Alex Wolf
Alex Wolf

Two former American Car Center employees sued the used car dealer for abruptly laying off workers without advance notice last month as it shut its doors and filed for bankruptcy.

The proposed class action, filed Monday, seeks to represent about 290 former employees of RAC Investment Holdings LLC and its bankrupt affiliates that operated as American Car Center.

The workers’ suit, filed in the US Bankruptcy Court for the District of Delaware, is asking for unpaid wages, benefits, bonuses and other forms of compensation they would have received for up to 60 days.

The lead plaintiffs, who formerly worked at ...

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