Workers terminated in the Alatrade Foods mass layoff or plant closing in Alabama between February and August 2025 may qualify to claim a share of the $500,000 WARN Act settlement, allocated by days laid off without 60 days' notice. Claims closed September 16, 2026, and the final approval ruling is pending.
What Is This Settlement About?
Alatrade Foods, Inc. agreed to a $500,000 settlement to resolve a class action alleging that it laid off workers at its Phenix City, Alabama processing plant in 2025 without the advance notice required by the federal Worker Adjustment and Retraining Notification (WARN) Act. The WARN Act generally requires covered employers to give affected workers at least 60 days' written notice before a plant closing or mass layoff. The lawsuit, Perry v. Alatrade Foods, Inc., claims the company failed to provide that notice before the layoff.Alatrade denies the allegations and contends it did not violate the law. It agreed to the settlement to avoid the cost and uncertainty of continued litigation, without admitting wrongdoing. The case is pending in the United States District Court for the Northern District of Alabama.
Who Qualifies?
According to the settlement, the class is all employees of Alatrade Foods who were terminated as part of a mass layoff or plant closing — as those terms are defined under the WARN Act — between February and August 2025. The affected workers were employed at the company's Phenix City, Alabama processing plant.Notices were sent to people identified in Alatrade's records as likely class members. If you worked at the Phenix City plant and lost your job in that period, you should have received a notice with the information needed to file.
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How Much Can You Get?
Alatrade agreed to fund a total settlement of $500,000. Each class member who submits a valid claim receives a share of the net settlement fund — the amount remaining after court-approved attorneys' fees and costs (Class Counsel will request no more than one-third of the fund), the class representative's service award ($1,500 requested), and the administrator's costs (up to $17,500) are deducted. Rather than an even split, each share is allocated based on the number of days you were laid off after being given less than the required 60 days' notice, minus any days worked between the notice and the layoff, any days worked on recall, and the equivalent days of any severance paid. Payments are made as back-pay wages, with standard payroll taxes withheld. Your estimated share is printed on the notice you received.OpenClassActions.com does not provide tax advice; for questions about how a settlement payment affects your taxes, contact the IRS or a qualified tax professional.
How to File a Claim
Claims are filed online through the official settlement website or by mail. To submit a claim online, class members must enter the CPT ID and passcode printed on the notice they received, so keep that notice handy. Because filing is gated on those administrator-issued codes, this settlement is treated as proof-required even though you do not need to gather pay stubs or other documentation yourself.If you believe you qualify but did not receive a notice, or you have lost your CPT ID or passcode, use the official settlement website to reach the settlement administrator (CPT Group, Inc.) before the deadline. A paper Claim Form may also be mailed to the administrator, postmarked on or before the deadline. The claim deadline is September 16, 2026. Class members who want to keep the right to sue Alatrade separately must instead submit a written exclusion request, and those who disagree with the terms may file a written objection — both also due September 16, 2026.
Key Dates and Timeline
• Layoff period (class period): February – August 2025• Claim deadline: September 16, 2026
• Exclusion (opt-out) and objection deadlines: September 16, 2026
• Final approval hearing: scheduled for October 2, 2026, 3:30 p.m. CST (Anniston, Alabama); ruling pending
• Payments: after final approval, if granted, and once the settlement becomes effective
What changed recently: The claim, opt-out and objection deadlines passed on September 16, 2026, and the October 2, 2026 final approval hearing date has also passed. As of October 20, 2026, the official settlement website still lists that hearing date, and its court documents page has not posted a final approval order or a payment date. Payments are not issued until after the court grants final approval and the settlement becomes effective.
Frequently Asked Questions
Who qualifies for the Alatrade Foods WARN Act settlement?
The settlement class is all employees of Alatrade Foods who were terminated as part of a mass layoff or plant closing (as those terms are defined in the WARN Act) between February and August 2025. The affected workers were employed at the Alatrade Foods processing plant in Phenix City, Alabama.
How much can I get from the Alatrade Foods settlement?
Alatrade Foods agreed to fund a total settlement of $500,000. Each class member who files a valid claim receives a share of the net settlement fund — the amount left after court-approved attorneys' fees and costs (up to one-third of the fund), the service award, and administration costs (up to $17,500) are deducted. Payments are allocated based on the number of days you were laid off after receiving less than the required 60 days' notice, minus any days worked between notice and layoff, days worked on recall, and the equivalent days of any severance paid. Payments are made as back-pay wages with standard payroll taxes withheld. Your estimated share is printed on the notice you received.
What is the deadline to file an Alatrade Foods settlement claim?
The claim deadline was September 16, 2026, and it has passed. Claims could be filed online or by mail and had to be submitted or postmarked on or before that date. The final approval hearing was scheduled for October 2, 2026; as of October 20, 2026, the official settlement website had not posted a final approval ruling.
Do I need proof to file an Alatrade Foods settlement claim?
Yes. To file online, class members must enter the CPT ID and passcode printed on the settlement notice they received. If you did not receive a notice or lost it, use the official settlement website to reach the administrator before the deadline.
What is the WARN Act?
The federal Worker Adjustment and Retraining Notification (WARN) Act generally requires covered employers to give at least 60 days' advance written notice before a plant closing or mass layoff. The lawsuit alleged Alatrade Foods did not provide that notice; Alatrade denies the allegations and settled to avoid the cost and uncertainty of continued litigation, without admitting wrongdoing.
Sources
• Official Settlement Website: PerryWARNSettlement.com• United States District Court, Northern District of Alabama, Perry v. Alatrade Foods, Inc., Case No. 4:25-cv-00521-CLM
