The company was having trouble in 2013 so it laid off some employees
In 2014 the company started doing better
The employees who were laid off in 2013 sued and won
The cost of dealing with the lawsuit caused the company to again experience hardship. This time they closed there doors.
So it had nothing to do with a severance package. When the company started doing better they were forced to compensate employees that were fired when the company was doing badly.