Civil Litigation Against Former LLC CEO for Losing Job Due To Bankruptcy & Fraud?

[NashvilleTN]

What is the name of your state (only U.S. law)? TN

I know that if litigation is possible, that I will need to contact an attorney local to me, but I am just seeing if it's worth my time to do so.

Company is LLC.
Company has been found to have committed fraud (Massive amounts - Over $25million - money was from a loan that was then used to fund other entities and not used for it's intended purposes)
Company has filed Chapter 11 Bankruptcy
Fraud has been uncovered and will more than likely be forced into a liquidation.

Question: If the employees lose their job because of fraud committed by the LLC CEO, is it possible to litigate directly against the CEO for loss of employment due to their own blatant negligence and fraud?

Thank you in advance.

 

[FlyingRon]

The employee, by and large, has no right to having a job. It matters little how corrupt, negligent, or crimianl, the employer is, they aren't "entitled".

If they did work that they weren't paid for, then they have a pretty high priority claim on the liquidation of the company in bankruptcy, but only for the time they were still employed.

 

[NashvilleTN]

Thank you. I was wondering if though there is legal recourse against the CEO directly, not the company itself.

 

[FlyingRon]

Thank you. I was wondering if though there is legal recourse against the CEO directly, not the company itself.

No. The CEO owes nothing to you. The company and perhaps some of the officers have oblgiations to the government or to those they defrauded, but you're not one of hte people who has a claim.

 

[NashvilleTN]

Ok. Thank You.