Katerra employees fire back with lawsuit over abrupt closure

Reports surfaced June 1 that construction startup Katerra was shutting down its U.S. operations. Three days later, mass layoffs began.

Now, three former employees are pursuing a class-action lawsuit against the construction startup, alleging it failed to provide adequate notice of their termination. The lawsuit, which is seeking to certify a class of some 700 laid off Katerra employees, was filed as an adversary complaint in Katerra’s bankruptcy case.