The Alliance of American Football may have suspended operations but its problems continue, with two class-action lawsuits having being filed in California by former employees.
A lawsuit filed by former Alliance players Colton Schmidt and Reggie Northrup – on behalf of all players – is targeting the league, its LLC Legendary Field Exhibitions, majority owner Tom Dundon, co-founder Charlie Ebersol and the Ebersol Sports Media Group.
It alleges breach of contract by the Alliance, breach of implied good faith and fair dealings, failure to pay wages and fraud and false promises. The suit – filed in the superior Court of the State of California – claims the “defendants concealed and suppressed a material fact about their intentions for the long-term viability of the Alliance of American Football” and that the defendants “intended to conceal the fact that the league was insolvent”.
The other lawsuit – filed by Birmingham Iron’s former director of community relations James Roberson Jr. – targets the Alliance, Legendary Field Exhibitions, and several investors including co-founder Bill Polian, MGM Resorts International, JK McKay, and former NFL players Troy Polamalu and Jared Allen.
Roberson’s lawsuit – filed in the US District Court in the Northern District of California – alleges violations of the WARN Act (Worker Adjustment and Retraining Notification Act of 1988), which entitles workers to 60 days’ notice ahead of a mass lay-off. It seeks to reclaim “unpaid wages, salary, commissions, bonuses, accrued holiday pay pension and 401(k) contributions” and other benefits that would have been due to employees under the 60-day WARN period.
The Alliance and some of its executives, including Ebersol, were also sued in February by venture capitalist Robert Vanech, who alleged the league was his idea.
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