MICHIGAN (WNEM) - A class action lawsuit alleging Michigan’s Unemployment Insurance Agency (UIA) falsely accused recipients of fraud has been settled for $20 million.
The settlement was announced Tuesday, Oct. 20 by Attorney General Dana Nessel and Pitt, McGehee, Palmer, Bonanni & Rivers, the Royal Oak-based law firm representing the plaintiffs in the class action lawsuit.
In 2015, plaintiffs sued the UIA for using an automated system known as MIDAS to falsely accuse thousands of Michiganders of unemployment fraud, resulting in the wrongful seizure of their paychecks, income tax refunds, and other assets without due process, the Michigan Attorney General’s office said.
The case, Bauserman v. Unemployment Insurance Agency, resulted in two decisions from the Michigan Supreme court. In April 2019, the court ruled the class action was timely filed in accordance with the Michigan Court of Claims Act but only those claimants who had money collected from them for the first time on or after March 9, 2015 could be included in the potential class. In July 2022, the court ruled the plaintiffs in the case could seek monetary damages from the state based on the alleged violation of the state constitution.
Earlier this year, the parties worked with a neutral mediator to negotiate a resolution of the class action. According to the attorneys, the mediator had access to detailed records and information to determine how many people were affected by the auto-adjudication system, how...
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