Settlement for workers impacted by Covid-19 at Blackstone’s Servpro worksites

“John Philo, a lawyer at non-profit Sugar Law Center, explained the severe medical issues and associated financial costs for those who contracted the virus: “We have two folks who were put on ventilators, and one who has over $300,000 in medical bills. Folks did have very real costs that they were paying for through medical care and testing. And they do want to be paid back for what they have been put through because of what these defendants did.” The plaintiffs alleged that the employers did not provide evidence of any comprehensive Covid-19 policy implementation.

While Servpro does not publish an employee count, the company ultimately profits from the labor arranged through franchisees, which often use subcontractors to hire additional workers. This franchising and subcontracting method can cause problems for workers – when workers face a problem on the job, it can be difficult to identify which company is accountable. Servpro in Tennessee (as a franchisor) successfully removed itself as a defendant from this lawsuit, avoiding legal responsibility as the parent company. For more on how private equity profits from disaster, see our September 2023 report

See full article by the Azani Creeks at the Private Equity Stakeholder Project.