LANSING, Mich. (WXMI) — A settlement has been reached in a class action lawsuit involving Michigan’s Unemployment Insurance Agency (UIA) and allegations it used an automated system that wrongly accused recipients of fraud.
The Michigan Department of Attorney General says property assets were seized without due process after the accusations were made.
The settlement is reportedly valued at $20 million.
“This settlement honors my commitment to ensure those falsely accused by their government receive fair compensation for their suffering,” said Attorney General Dana Nessel. “All legal issues relative to the case have been decided and it is time to put this to rest and deliver this meaningful resolution to those Michigan residents who were harmed by this error.”
We’re told the Plaintiffs sued the UIA in 2015 over their use of MIDAS, the automated system that reportedly caused thousands of state residents to lose paychecks, tax refunds and other assets under false allegations of unemployment fraud.
A class action lawsuit was later filed in 2019.
The state says the parties involved will seek approval from the Court of Claims regarding the settlement in the months ahead.
