$500K Alatrade Foods WARN Act Settlement, Were You Laid Off at the Phenix City Plant Without 60 Days’ Notice? Here Is How to Claim Your Payment Before August 5

The Alatrade Foods WARN Act class action settlement is a federal employment lawsuit where former employees of Alatrade’s Phenix City, Alabama poultry processing plant can receive back pay by filing a claim before August 5, 2026. Alatrade Foods, Inc. agreed to pay $500,000 to resolve allegations that it violated the federal Worker Adjustment and Retraining Notification Act — commonly called the WARN Act — by failing to give workers at least 60 days’ advance notice before laying them off between February and August 2025. The case, Cynthia Perry v. Alatrade Foods, Inc., Case No. 4:25-cv-00521-CLM, is pending in the U.S. District Court for the Northern District of Alabama, Middle Division, and has received preliminary court approval.

Settlement at a Glance — Perry v. Alatrade Foods, Case No. 4:25-cv-00521-CLM

Field	Detail
Settlement Amount	$500,000
Claim Deadline	August 5, 2026
Who Qualifies	All Alatrade Foods employees terminated due to a mass layoff or plant closing at the Phenix City facility between February and August 2025
Payout Per Person	Varies — calculated based on days worked without proper notice, minus any severance paid and days recalled
Proof Required	No — Alatrade’s employment records identify class members
Settlement Status	Preliminarily Approved — Final Hearing July 23, 2026
Administrator	CPT Group, Inc. — 1-888-439-2849 — www.PerryWARNSettlement.com
Official Website	www.PerryWARNSettlement.com
Last Updated	May 12, 2026

Where This Case Stands Right Now

• The U.S. District Court for the Northern District of Alabama, Middle Division, has granted preliminary approval to the $500,000 settlement and the case is now open for claims.
• The final approval hearing is scheduled for July 23, 2026, at 1:30 p.m. at 1100 Gurnee Avenue, Anniston, Alabama 36201.
• Claims, opt-out requests, and objections all share the same deadline of August 5, 2026.
• Payments will be issued as back pay with standard payroll taxes withheld, and you will receive a Form W-2 for tax reporting purposes.

What Is the Alatrade Foods Lawsuit About? Perry v. Alatrade Foods, Inc., Case No. 4:25-cv-00521-CLM

Alatrade Foods, Inc. is an employee-owned poultry processing company headquartered in Boaz, Alabama that operates three processing plants across the state. Its Phenix City facility — the company’s largest plant — processes chicken for both domestic and export markets. In early 2025, the company announced it was laying off approximately 165 workers at that plant, citing changing market conditions. The layoffs were effective March 28, 2025, according to a WARN notice Alatrade filed with the Alabama Department of Commerce on March 27 — just one day before the layoffs hit.

That is exactly where the legal problem starts. The federal WARN Act — the Worker Adjustment and Retraining Notification Act — requires employers with 100 or more employees to give workers at least 60 days’ written notice before a mass layoff or plant closing. The WARN Act exists for a straightforward reason: it gives workers and their families time to find new jobs, arrange finances, and plan their next steps before their income disappears. If an employer skips that notice — or gives it too late — employees are entitled to back pay and benefits for each day of the notice period they missed.

Lead plaintiff Cynthia Perry filed this unpaid wages lawsuit in federal court alleging that Alatrade failed to meet that 60-day requirement. The lawsuit covers not just the initial March 2025 layoffs but all employees terminated due to a mass layoff or plant closing at the Phenix City facility between February and August 2025. Alatrade denies all allegations and has raised several WARN Act defenses — including the unforeseeable business circumstance defense, the faltering company defense, and the good faith defense. Rather than resolve those arguments at trial, both sides agreed to settle for $500,000. Similar employment class action settlements involving WARN Act violations have resulted in meaningful back pay recoveries for workers. If you are also looking into broader employment rights, the Starbucks class action lawsuits and employment settlements page covers comparable wage and employment claims affecting hourly workers across different industries.

Related article: $83.75M TerraForm Power Stockholder Settlement, Did You Own TERP Shares When Brookfield Took Over? Your Payment Is Coming Automatically

Who Qualifies for the Alatrade Foods WARN Act Settlement?

The settlement class is defined simply and directly in the court notice. Here is how to know if this settlement covers you:

You may qualify if:

• You were employed by Alatrade Foods, Inc. at the Phenix City, Alabama processing plant
• Your employment was terminated due to a mass layoff or plant closing as those terms are defined under the federal WARN Act
• Your termination occurred between February 2025 and August 2025
• You received this notice by mail — if Alatrade’s records show you worked there during those layoffs, you are likely a class member

You do NOT qualify if:

• You worked at Alatrade’s other facilities in Boaz or Albertville — this settlement covers the Phenix City plant only
• You voluntarily resigned, retired, or were terminated for individual cause unrelated to the mass layoff or plant closing
• You were recalled to work and are excluded under the settlement’s calculation methodology

Your individual payment amount depends on the number of days you were laid off without receiving the legally required 60 days’ advance notice. The allocation formula subtracts from that count: any days you continued working between receiving notice and your actual layoff date; any days you were brought back after being recalled; and the number of days equivalent to any severance pay you already received. If the parties cannot agree on your individual amount, the mediator will step in — and if still unresolved, the mediator acts as an arbitrator to decide.

How Much Can You Get from the Alatrade Settlement?

The gross settlement fund is $500,000. Before payments reach workers, the following amounts come out first. Attorneys’ fees are requested at up to one-third of the fund — approximately $166,667. Costs and expenses for class counsel come on top of that. Settlement administration costs through CPT Group are capped at $17,500 and will be paid from the fund. A service award of up to $1,500 is requested for class representative Cynthia Perry.

Each class member’s payment is individually calculated — unlike pro-rata settlements where everyone gets an equal share, your payment here depends directly on how many days of required notice you did not receive. Workers who were terminated with zero advance notice will receive more than those who received partial notice. Workers who received severance pay or were recalled for some days will have those amounts or days subtracted from their calculation.

Your estimated individual share was printed on the notice you received by mail — look for the field marked SubClass1_Amt on your notice document. That estimate may change slightly based on final court rulings on fees and costs. All payments are classified as back pay, will have standard payroll taxes withheld, and will generate a Form W-2 — not a 1099. Plan accordingly for tax purposes.

How to File Your Alatrade Foods WARN Act Claim

Filing is straightforward and free. You need the Unique ID printed on the notice you received from CPT Group to file online. The deadline is August 5, 2026 for both online and mailed submissions.

Step 1 — Locate your notice letter from CPT Group and find your Unique ID printed on the form.

Step 2 — Visit www.PerryWARNSettlement.com to file online using your Unique ID, or complete the paper claim form attached to your notice.

Step 3 — Fill in your name, contact information, and any required employment details as prompted.

Step 4 — Submit online — or if filing by mail, make sure your form is postmarked by August 5, 2026 and mailed to:

Perry v. Alatrade Foods, Inc. c/o CPT Group, Inc. P.O. Box 19504 Irvine, CA 92623

Step 5 — Save your confirmation number or keep a copy of your mailed form for your records.

Estimated time to complete: 5–10 minutes.

Alatrade Foods Settlement Key Dates

Milestone	Date
Layoffs Effective (Initial)	March 28, 2025
Lawsuit Filed	2025 — Case No. 4:25-cv-00521-CLM
Preliminary Approval Granted	TBD — per court order (case pending in N.D. Ala.)
Claim Filing Deadline	August 5, 2026
Opt-Out Deadline	August 5, 2026
Objection Deadline	August 5, 2026
Final Approval Hearing	July 23, 2026, 1:30 p.m. — Anniston, Alabama
Expected Payment Date	TBD — after final court approval and resolution of any appeals

Frequently Asked Questions

Is there a class action lawsuit against Alatrade Foods? 

Yes. Cynthia Perry v. Alatrade Foods, Inc., Case No. 4:25-cv-00521-CLM, is a federal WARN Act class action pending in the U.S. District Court for the Northern District of Alabama, Middle Division. The court has preliminarily approved a $500,000 settlement covering workers laid off at the Phenix City plant between February and August 2025. The final approval hearing is July 23, 2026.

Do I need to do anything right now to be included? 

Yes — unlike some settlements that pay automatically, you must submit a claim form to receive payment. Current and former employees identified by Alatrade’s records received a notice by mail, but you still need to file. Submit your claim online at www.PerryWARNSettlement.com or by mail to CPT Group, Inc. before August 5, 2026.

Do I need a lawyer to file an Alatrade WARN Act settlement claim?

 No. Filing through the official settlement website is free and takes about 5–10 minutes. You do not need a consumer rights lawyer or employment discrimination attorney to participate. If you want independent advice about whether to opt out and pursue an individual claim instead, you may wish to speak with an employment attorney — a free legal consultation costs you nothing.

How much will I receive from the Alatrade settlement? 

Your individual amount is based on the number of days you went without the legally required 60-day WARN Act notice, minus any days worked after receiving notice, days worked upon recall, and the equivalent of any severance you received. Your estimated payment was included in the notice mailed to you. The exact amount may shift slightly based on court rulings on fees and costs.

When will Alatrade settlement payments go out?

 Payments will go out after the court grants final approval at the July 23, 2026 hearing and resolves any post-approval appeals. No specific payment date has been set. Payments will be issued as back pay wages — standard payroll taxes will be withheld and you will receive a Form W-2.

What if I want to sue Alatrade on my own instead of joining the settlement? 

You can opt out of the class settlement by submitting a written Request for Exclusion postmarked by August 5, 2026 to CPT Group, Inc., P.O. Box 19504, Irvine, CA 92623. Your letter must include your name, last four digits of your Social Security number, signature, the case name and number, and a statement requesting exclusion. If you opt out, you give up your settlement payment but keep the right to pursue an individual claim against Alatrade separately. Consult an employment attorney before deciding.

Is this settlement legitimate?

 Yes. The case is a certified federal class action in the Northern District of Alabama, authorized by a court order. CPT Group, Inc. is the court-appointed settlement administrator. The official website is www.PerryWARNSettlement.com and the administrator’s toll-free number is 1-888-439-2849. Never pay anyone a fee to file your claim — it is always free.

Will my settlement payment affect my taxes? 

Yes. Unlike many consumer settlements, payments from WARN Act cases are classified as back pay wages. Standard payroll taxes — including federal, state, and FICA — will be withheld from your check, and you will receive a Form W-2 at year end. Plan for this when filing your taxes.

Sources & References

1. Official Court Notice — Perry v. Alatrade Foods, Inc., Case No. 4:25-cv-00521-CLM, U.S. District Court for the Northern District of Alabama, Middle Division: www.PerryWARNSettlement.com
2. Strauss Borrelli PLLC — WARN Act Investigation Notice, March 31, 2025: straussborrelli.com

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against the official court-authorized Notice document filed in Perry v. Alatrade Foods, Inc., Case No. 4:25-cv-00521-CLM, U.S. District Court for the Northern District of Alabama, Middle Division, on May 12, 2026. Last Updated: May 12, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.