sentences:  The Northern California locations closed following a lawsuit filed by employees alleging improper tip pooling, wage theft, and labor misclassification.A Facebook posting from the Engelharts claimed that their position was "completely legal" but that defending them in court would be too expensive, calling the process "legalized extortion".The company was able to settle out of court in early 2012, under an arrangement that allowed two Northern California restaurants to remain operational; the remaining Berkeley location closed in 2015.