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Bankruptcy Judge Approves 1 Million Settlement for Fired Rhythm & Hues Workers

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A California bankruptcy judge has given preliminary approval to a $1 million settlement made with fired workers of Rhythm & Hues, the Academy Award-winning VFX firm that did the special effects for Life of Pi, among many other films, according to The Hollywood Reporter yesterday. Earlier this year, the company filed for chapter 11 protection and terminated 238 employees. Before the company was sold to an affiliate of Prana Studios for $1.2 million in cash and the assumption of liabilities, a class-action lawsuit was filed by one of the employees terminated, alleging violations of the Worker Adjustment and Retraining Act, including not being given the requisite 60 days of written notice before termination. Last month, a joint motion was filed in bankruptcy court that sought approval for a $1 million settlement for wages and benefits left outstanding. After a hearing last week, a judge gave preliminary approval and set a hearing for final approval on Dec. 13.