Thousands of newspaper carriers have settled their class-action lawsuit against the Orange County Register for a total of $30 million.
The carriers alleged that the Southern California newspaper’s parent company classified them as independent contractors and not employees, denying them overtime pay and mileage. They reached a settlement in 2009, but the company filed for bankruptcy.
Attorney Daniel J. Callahan said Tuesday that Freedom Communications Inc. initially negotiated a $14.5 million payment to the carriers under a bankruptcy reorganization plan.
Callahan, who represents 3,000 of the carriers, says they then sued the company’s officers and directors. He says the company recently agreed to another $15.5 million payment in mediation.
Freedom Communications spokesman Robert Emmers had no immediate comment.
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