Updates periodically added below.

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Case Background

 

Bitwise Industries employed over 1,000 workers at facilities in disadvantaged communities like California's Central Valley, Buffalo, and Toledo. The company offered access to the tech labor market for those who were underrepresented in the industry and received national attention for its inclusive mission.

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But the company collapsed because of financial mismanagement. At the end of May 2023, its founders and board of directors ordered an immediate company-wide closure. Without notice or compensation, the entire workforce was unemployed.

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Federal and state laws require employers to give workers notice before a mass layoff. In most cases, this is the rule: employers have to tell their workers 60 days before they will lose their job, and if they don't, they need to compensate the workers 60 days' pay. This is called the WARN Act.

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EKO, along with the Fresno-based Bonakdar Law Firm and Whelan Law Group, represents workers in a class action against Bitwise and its directors. The case is Garza v. Bitwise Industries, Case No. 23CECG02098, and was filed in Summer 2023 in Fresno County Superior Court. 

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Bitwise and all its affiliates declared bankruptcy in 2023, after the Garza case was filed. The Garza case, along with a similar case that was filed at the same time titled Nunn v. Bitwise Industries, Inc., were transferred to the U.S. Bankruptcy Court for the District of Delaware. 

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The lawyers who filed the Garza case and the Nunn case worked together in January 2024 to reach a settlement with the Bitwise directors. The Delaware court approved the settlement in July 2024. The settlement will provide up to $20 million to resolve several lawsuits, including the WARN Act cases. A first payment of $6 million will be distributed to Bitwise workers in 2025. A second payment is anticipated in 2026.

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When a company closes its doors, it has to give notice or compensation to its workers under the WARN Act. If you lost your job in a mass layoff and didn't get what the law requires, contact an EKO attorney to discuss your rights.

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Updates

​May 2025: ​

The first payment of $6 million was expected to be distributed to Bitwise workers by March 31, 2025. This payment was delayed while the parties confirmed the accuracy of certain records. The Parties are working diligently to review and confirm the Bitwise payroll records and anticipate completing their review in early May. We anticipate checks will issue promptly.

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If you were a Bitwise worker included in the WARN Act case, you should have received a notice about the settlement by mail. If you did not, or if you have recently moved and want to make sure we have your current address, contact us.

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