Lehman Brothers IT staff to sue over redundancies

A former software developer at Lehman Brothers has filed a lawsuit after1,000staff at a New Jersey datacentre were made redundant.

A former software developer at Lehman Brothers has filed a lawsuit after1,000staff at a New Jersey datacentre were made redundant.

Miron Berenshteyn was a senior Java programmer at the company before he was made redundant afterthe investment bank filed for Chapter 11 in September.

The lawsuit, filed at the Southern District of New York bankruptcy court, alleges that the workers were not given 60 days advanced written notice of the termination of their jobs as required under US law. They are seeking to recover lost wages and benefits and other payments such as redundancy money.

Legal firm Outten & Golden is representing Berenshteyn in the case with the total claims exceeding $5m.

When Lehman Brothers, which employed 5,000 UK staff, filed for bankruptcy in September it signalled that the financial crisis had entered a new phase.

IT staff were a major part of the jobs cull. Analysts said only a quick sale of its business units would prevent about 99% on all IT staff losing their jobs.

However, the high quality of the investment bank's IT staff should stand them in good stead in the job market. Parts of the bank have already been sold to Asian bank Nomura as well as Barclays.

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