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The suit claims Limestone violated the WARN Act by not giving enough notice before a layoff.
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On Saturday, Limestone University held its last graduation ceremonies before closing down. The university had operated in Cherokee County for 179 years.
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The Board of Trustees announced Tuesday that Limestone University would shutter following Saturday's graduation ceremony. The college had been struggling with deep financial problems wrought by rising costs and declining enrollment.
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The university's Board of Trustees did not come to a decision about the future of Limestone University, but said it could have a source of funding that could keep on-campus learning going.