August 8, 2018 / 8:57 PM / 10 months ago

Puerto Rico public employees lose bid to litigate early retirement

Public employees in Puerto Rico suing to participate in a voluntary early retirement program are subject to a litigation stay and need to press their claims within the U.S. territory’s bankruptcy-like restructuring, a federal judge ruled on Wednesday.

U.S. District Judge Laura Taylor Swain denied a bid to lift the stay by 17 employees, saying she could not allow them to proceed with lawsuits without the consent of the island’s federal oversight board. The benefits they sought would require disbursing funds belonging to the Puerto Rican government and therefore subject to the board’s authority, she said.

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