What Happens When a Company Gets Sued for Sexual Harassment… and Goes Out of Business?

The U.S. Equal Employment Opportunity Commission (EEOC) has sued two defunct Fresno, California based food companies, Zoria Farms and Z Foods, on behalf of four female employees who allegedly suffered sexual harassment, discrimination, and retaliation several years ago.

Since both food companies are out of business, plaintiffs hope to collect from the money made from the sale of the companies’ assets as well as from insurance policies.

Here are the key allegations, according to the lawsuit filed recently in U.S. District Court:

  • A supervisor approached one of the plaintiffs and starting “hugging her from behind, grabbing her buttocks, rubbing her arm, following her, telling her that she was pretty and making comments about her physical appearance.”
  • The supervisor offered to promote this woman if she had sex with him.
  • The supervisor used the same nasty tactics with several other women.
  • Women who complained suffered retaliation from the company, which failed to rehire workers who did not acquiesce to these advances.
  • This conduct allegedly continued after Z Foods bought out Zoria Foods in 2008.

Rumie Vuong, an attorney for the EEOC, said her organization is pursuing the case passionately “because the problem of sexual harassment, especially in agricultural industry, is so prevalent.”

Putting Your Workplace Sexual Harassment Story into Context

Whether you are an employee who was mistreated at work, or you are an employer who potentially exposed your workers to a hostile or dangerous culture, you have serious and urgent legal questions that you need answered. Talk to Attorney Nancy Gray today — a free, thorough consultation can give you peace of mind and help you sleep at night again.


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