Michigan Judge Approves $20 Million Settlement for Mistake in Jobless Claims

A judge approved a $20 million class action lawsuit covering thousands of people Michigan wrongly accused of cheating on unemployment benefits.

Claims Court Judge Douglas Shapiro signed the deal last week, saying it was superior to other ways to compensate people who were victims of an automated computer system in 2013-2015.

People were accused of cheating to get unemployment benefits. They were forced to return the money, along with significant fines, before the Unemployment Insurance Agency finally acknowledged the widespread mistakes that affected more than 40,000 people.

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While the refund was made, the state continued to be sued by people who claimed their due process rights — the right to be heard — were violated when they tried to unravel.

Last summer, the Michigan Supreme Court said people can apply for financial assistance when the state violates their rights – a groundbreaking view.

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According to Shapiro, to date, more than 8,000 people have been identified as possible beneficiaries of the settlement agreement.

“While this settlement cannot address the hardships these residents are facing, it does provide the long overdue relief they deserve,” Attorney General Dana Nessel said in a statement.

About $6.5 million from the settlement will go to the lawyers who worked on the case.

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Notifications will be sent out to class members soon. Anyone looking for more information can visit the websites of the Attorney General, the unemployment agency, and the lawyers involved in the lawsuits.