Duraco workers sue executives to target personal assets

About 30 former workers of the now-shuttered Duraco Products in Streamwood filed a federal lawsuit Thursday seeking to be paid more than $350,000 in back wages by targeting the owners' personal assets.

The case, filed in U.S. District Court in Chicago, alleges that Michael Lynch and brother Kevin Lynch violated state and federal labor laws by not paying workers earned wages and overtime.

Besides the back wages, the suit seeks an unknown amount of attorney fees and court costs, according to Katherine Kolon, an attorney with Chicago-based Working Hands Legal Clinic representing the nonunion workers.

"It doesn't matter if a company was in bankruptcy, the individuals who ran the company can still be held responsible," said Kolon.

Duraco, which makes plastic plantware and bird feeders, was ordered last month by U.S. Bankruptcy Court to transition into Chapter 7 liquidation and had closed its doors. Michael Lynch said he is not an owner, but only assisted his brother Kevin, who was the owner.

"The company was losing money before we bought it," Michael Lynch said. "But he was able to pay down about $16 million in debt, which kept the company going. Otherwise, it would have closed much sooner."

Michael Lynch also said that he and his brother did not take a salary for the last couple of years. Lynch also said he has not yet reviewed the lawsuit, but said he has been "distressed" by the situation and would vigorously defend himself.

"First, I have never had an ownership interest in Duraco Products Inc. nor did I have ever had any involvement with the payment of payroll," Lynch said. "Second, I know that my brother, Kevin Lynch, reached out to the Working Hands Legal Clinic (Wednesday) in an attempt to work with them to have Duraco Products Inc. converted back to an operating company."