Delay of Approval for $55M Michigan Class-Action Lawsuit on Unemployment Payments for One Month
Michigan residents who applied for unemployment benefits during the COVID pandemic faced a challenging situation when the Unemployment Insurance Agency (UIA) demanded repayment of funds. Over 23,000 residents found themselves in this predicament, as the UIA failed to properly assess whether claimants who contested these demands had submitted their appeals correctly, if at all. This mishandling of claims led to a class-action lawsuit, Saunders v. Unemployment Ins. Agency, resulting in a $55 million settlement—though the state refused to admit fault in the matter.
Judge Brock Swartzle from the Michigan Court of Claims postponed the final approval hearing to determine when eligible parties would receive their settlements. On average, residents involved in the lawsuit can expect to receive $1,400 from the state. The delay in the approval process left impacted individuals waiting for justice as they sought restitution for the improper repayments demanded by the UIA.
The roots of this issue trace back to the outset of the COVID-19 pandemic in 2020. With the implementation of public health measures that resulted in the closure of businesses across Michigan to curtail the virus’s spread, a surge in unemployment claims inundated the UIA. This surge overwhelmed the agency, leading to the incorrect disbursement of millions of dollars in unemployment benefits. Subsequently trying to reclaim these misallocated funds, the UIA often did so without verifying the legitimacy of appeals submitted by beneficiaries.
The ramifications of this mishandling of unemployment claims impacted thousands of Michigan residents who suffered financially during the pandemic. Drawing attention to the mismanagement within the UIA, the class-action lawsuit underscored the agency’s lack of due diligence when demanding repayment from claimants. The $55 million settlement aimed to provide some relief to those affected by the UIA’s errors, offering a semblance of justice to individuals wrongfully asked to return the financial support they had received.
As the final approval hearing for the settlement loomed, eligible parties awaited a resolution to their plight. Scheduled for April 24, 2025, residents involved in the lawsuit had the opportunity to voice their concerns during the hearing. Judge Swartzle facilitated the process, ensuring that affected individuals could actively participate in the legal proceedings to address any lingering issues regarding the settlement and the UIA’s actions.
In sum, the delayed approval of the $55 million class-action lawsuit involving unemployment payments in Michigan shed light on the challenges faced by residents during the COVID-19 pandemic. As the state grappled with an overwhelmed unemployment system, many individuals found themselves embroiled in a legal battle to seek restitution for improper repayment demands. The outcome of the settlement would provide much-needed relief to impacted parties, offering a form of justice after enduring the financial strain brought on by the UIA’s mishandling of unemployment benefits.
