LANSING, Mich. (WLNS) – More than 8,000 Michiganders who either lost wages or tax refunds because their unemployment claims were wrongly listed as fraudulent could be getting some of their money back.
The Michigan Court of Claims approved the details of a $20 million dollar settlement between the Michigan Unemployment Insurance Agency and those in the class action lawsuit.
Experts have criticized the unemployment insurance agency’s MIDAS software program named in the original lawsuit for causing false fraud issues.
“I am grateful to the court for agreeing that the compensation settlement is fair, reasonable, and adequate and that it satisfies all due process requirements,” said Michigan Attorney General Dana Nessel in a statement. “While this settlement cannot undo the hardships these residents faced, it does secure the long overdue relief that they deserve.”
Attorneys said the people who were wrongly accused of fraud lost wages, tax refunds and much more.
In July of last year, the court ruled that two plaintiffs in the case could receive money from the state for alleged violations under the state constitution.
Earlier this month, one of the attorneys representing people impacted by the error said they reviewed each case in-depth and found a number of people who went into bankruptcy because of missing out on those important paychecks
“We spent a lot of time trying to categorize and articulate the different types of harm that they suffered. You know stories that, someone was waiting to replace a refrigerator but they couldn’t because their tax refund was seized. There are hundreds and hundreds of these stories,” said Jennifer Lord, an attorney representing the class action group.
The attorney general’s office said people affected by the settlement will be getting notices on the first of February, telling them important dates and documents they will need in order to get their compensation.