Karna LLC stem from a definitive federal court judgment and the newly active Maryland mini-WARN regulations.
Details of the Court Ruling
The Lawsuit:Karna LLC filed a formal lawsuit (Karna, LLC v. USA in the US Court of Federal Claimson November 25, 2025, attempting to block the transition of the $309 million World Trade Center Health Program contract.
The Override Battle: KKarna Unable to Halt General Dynamics’ $309 Million Health Awardarna argued that the CDC took unjustified action by issuing an immediate performance override on November 14, 2025. This allowed GDIT to start working despite an automatic stay triggered by a prior Government Accountability Office (GAO) protest. The CDC defended its swift transition by stating that halting performance posed a significant risk to public health.
The Final Judgment: On December 17, 2025, Judge Molly R. Silfen issued an order denying Karna’s motions for declaratory and injunctive relief. The court ruled in favor of the government finding that Karna failed to prove the CDC acted improperly, completely closing the legal avenue to reclaim the contract.
Maryland WARN Notice Breakdown The Official Filing: Following the lost legal battle, Karna, LLC officially submitted a Worker Adjustment and Retraining Notification (WARN to the Maryland Department of Labor on August 6, 2026.
Scope of the Layoffs: The filing registers a permanent plant closure at their Greenbelt office (6404 Ivy Lane, Suite 620), resulting in 38 employee terminations. Regulatory Compliance: The layoffs conform to the Maryland Economic Stabilization Act (the state’s “mini-WARN” law), which enforces a strict mandatory 60-day notice period for reductions in operations affecting 15 or more employees. The layoffs are scheduled to take effect on November 30, 2026.
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