Dozens of former employees said they were fired from bowler Lawyers representing the claimants said Monday they will sue the bowling chain based on their age or out of a retaliation scheme after the U.S. Equal Employment Opportunity Commission concludes its case against the chain.
Bowlero is the world’s largest owner and operator of bowling centers Involved in Equal Employment Opportunity Commission investigation The company previously disclosed in securities filings that more than 70 former employees have claimed they were unlawfully terminated since 2016.
They allege in complaints to the Equal Employment Opportunity Commission that Bowlero fired them because of their age as it worked to transform hundreds of its bowling alleys from what the company called “dirty” bowling alleys. ” bowling alley. Premium experience According to previous reports by CNBC, food and beverage supplies have increased. Bolero denied the claims.
The company, which went public through a special purpose acquisition company in late 2021, is one of the winning stocks featured in the SPAC craze. The company owns the two largest bowling brands – AMF and Lucky Strike – and as of July (the latest available data), operated more than 300 bowling centers in North America. Bowlero’s annual revenue nearly tripled between 2021 and 2023, from $395 million to $1.06 billion, according to company filings. Bowlero’s shares were down about 21% year to date as of Monday’s close.
On Monday, Bolero disclosed in its fiscal third-quarter earnings report and quarterly securities filing that the EEOC has closed the case and will not proceed with the lawsuit.
“The company has received a positive update on the status of age discrimination claims pending with the EEOC… The EEOC has issued notices of closure regarding individual age discrimination claims that, in most cases, were filed with the EEOC years ago,” Bolero said in the News Said in the manuscript. “These notices certainly provide plaintiffs with the right to sue on an individual basis.”
Bolero noted that it received a letter from the Equal Employment Opportunity Commission saying the agency had decided not to pursue charges against the company. The agency said in one of the letters that the settlement of the case does not prove wrongdoing by the company.
“By terminating this case, the Commission does not prove that (Boleiro) complied with the regulations. Furthermore, our termination of the investigation does not affect any victim’s right to bring a private action or the Commission’s right to later prosecute or to later intervene in a private civil action ,” the Equal Employment Opportunity Commission said in a letter sent Friday.
During the company’s earnings call with Wall Street analysts late Monday, executives said the EEOC investigation was now over and would no longer be a distraction for them.
“For eight and a half years, the company has vigorously denied and rebutted the false accusations made against it,” Chief Executive Thomas Shannon said in his opening remarks. “We are pleased to report these very positive developments on behalf of our shareholders.”
Later, when asked about the financial impact of the EEOC investigation, Treasurer Robert Lavan said there were “millions of dollars” flowing into the income statement, but “more importantly, This distracts people’s attention”.
“So we are pleased to now be able to focus 100 percent on our business and put this matter behind us,” Lavan said.
However, lawyer Daniel Dowe, who represents dozens of claimants, said the case has not gone away – it has just taken another form now.
Dowie told CNBC that the EEOC’s decision allows former employees to proceed with their own lawsuits, and that he expects to file one on behalf of more than 70 former employees. Dowie plans to seek monetary damages in the case.
The EEOC had previously found probable cause in 58 complaints against Bowlero, with the remainder still under investigation when the agency closed its case, according to Bowlero’s securities filings and Dowe’s data. Employees who still have cases pending with the EEOC also have the right to sue and are among the potential plaintiffs represented by Dow, he said.
The company disclosed in the filing that the EEOC investigation also determined that Bolero had engaged in a “pattern or practice” of age discrimination (a term indicating systemic problems) since at least 2013, which Bolero also denied Got this. Bolero said the Equal Employment Opportunity Commission’s pattern or practice investigation has also concluded.
When the EEOC finds probable cause in a complaint, it means it believes Discrimination occurs. The agency typically makes such decisions in only a small number of cases each year, Equal Employment Opportunity Commission data shows.
The agency explains on its website that under EEOC procedures, when the agency detects discrimination, it works to resolve the issue between the employer and the victim. If the two sides cannot reach a resolution, the EEOC must decide whether to sue the employer—a matter on which EEOC members vote.
“Due to limited resources, we are unable to prosecute every case where we find discrimination,” EEOC explains on its website.
According to previous reports by CNBC, in January 2023, the Equal Employment Opportunity Commission attempted to resolve complaints with Bowlero for $60 million, but these efforts failed last April.
It’s unclear whether the question of whether to prosecute Bolero has been brought before EEOC commissioners for a vote. The EEOC declined to comment because much of its process is confidential under federal law.
Dow said he asked the agency last month to close the case so his client could move forward with his own lawsuit. He added that he was “pleased” that the matter was now ready for private action.
“The investigation was thorough and in-depth, resulting in a 58-0 decision in our favor, so our clients believe we should let the EEOC do its work,” Dowe said.
He added that age discrimination is “one of the worst forms of discrimination. Most of what you hear in discrimination cases is about race and gender, but age is scary because people are at the end of their careers and they It’s a shame not being able to go back to college and re-equip, it kind of ends their life.
He told CNBC he plans to sue Bowlero for $80 million, plus legal fees. Bowlero had about $212.4 million in available cash and cash equivalents as of March 31, according to its quarterly securities filings. Dow said he has until mid-July to file the lawsuit.
The company has previously said some complaints against Bolero are years old and could be challenged under the statute of limitations. Dowie said he believed his clients would prevail in federal court and that there was “strong” precedent in their favor.
In response, Bolero’s attorneys, Alex Spiro and Hope Skibitsky of the law firm Quinn Emanuel, said they were “pleased with the EEOC’s findings.” Lawyers said the company would defend any claims brought by its former employees.
“Boleiro will dismiss the allegations,” the lawyers said. In previous statements, they denied the allegations against Bolero.
In a separate but related question, former Bowlero executive Thomas Tanase requested Countersuit Bowling Chain Last week, a Virginia federal court dismissed the extortion and retaliation charges. Tarnas’ attorneys previously said the lawsuit could and “most likely” would be filed as a new lawsuit if the request is denied. Bolero also denied Tanas’s claims.
Tanas’ attorney did not immediately respond to a request for comment.
