The court approved TGI Fridays’ settlement with Jamie Cramer, Alexandria Modugno, Andrew Dunkes and 25 other former employees, resolving litigation alleging federal and New York WARN Act violations and breach of contract. The plaintiffs had appealed the May 2025 dismissal of their adversary complaint, and that appeal was fully briefed in the Northern District of Texas when the parties filed the WARN settlement motion.

Under the settlement order, the debtors may make a $20,000 cash payment, while the plaintiffs receive a single allowed $200,000 Class 4 general unsecured claim without priority or administrative status. A collective proof of claim will supersede the individual claims, and the adversary proceeding and appeal will be dismissed with prejudice under approved mutual releases. The order became immediately effective, with the customary 14-day stay waived, removing appellate expense and uncertainty while fixing the employees’ recovery within the confirmed liquidation plan’s unsecured-creditor waterfall.