The Justice Department indicted Arthur Andersen on March 14, 2002, on certain criminal charges relating to the firm's services to Enron Corporation. On April 8, 2002, the company allegedly sent notices to a number of employees that they would be terminated at a future date but would remain employed during a "job search" period of two or more weeks. Nancy Roquet was allegedly laid off as of April 23, and Coretta Robinson as of May 15.

Before the layoffs, Arthur Andersen allegedly had more than 3,000 full-time employees in its Chicago office. The action alleges that the firm laid off 436 workers on 20 different dates from the Chicago office during the period from April 23 to May 22, 2002. Another 154 employees lost their jobs on 22 different dates between May 23 and June 21. Finally, the company allegedly laid off another 45 workers on 19 different dates between June 22 and July 21.

The WARN Act requires employers with 100 or more full-time employees to give at least 60 days advance notice of a plant closing or mass layoff to affected employees. To trigger the notice requirement under the law, the employer must, during a 30-day period, lay off at least 500 workers or lay off at least 50 workers who constitute at least 33 percent of the total workforce. However, the law also provides for aggregating the number of laid-off employees during a 90-day period, as well. This is where Anderson allegedly ran afoul of the regulations.