Genesee News

The City of Flint’s insurance company recently agreed to increase the state’s water-related civil lawsuit settlement by $20 million to further compensate the residents of Flint, according to a press release by the City.

This agreement still requires City Council approval and will resolve outstanding lawsuits at no cost to the City and to taxpayers.

The detailed settlement agreement for the Flint water-related civil lawsuits was recently filed with Judge Judith Levy of the United States District Court for the Eastern District of Michigan. The agreement included the state of Michigan’s proposed $600 million settlement, an additional $20 million on behalf of the City of Flint, $20 million from McLaren Regional Medical Center and $1.25 million from Rowe Professional Services Company. This brings the total for the state settlement agreement to $641.25 million, with the United States Environmental Protection Agency and other engineering firms yet to settle.

The settlement would resolve all civil lawsuits for all parties that agreed to settle, but would not be considered the final total settlement for water-related lawsuits. Litigation will continue against the EPA and the other engineering firms that haven’t agreed to settle.

“While no amount of money will heal the wounds inflicted on this community, we are glad to see more entities step up and take responsibility,” Mayor Sheldon Neeley said. “The residents of the City of Flint deserve justice and they deserve a resolution to these lawsuits.”

Judge Levy will first review the agreement as part of a motion for preliminary approval, and a hearing will be held prior to issuing a ruling on whether the settlement meets certain legal standards. If preliminary approval is granted, then the claim registration process can begin, which would permit Flint residents to indicate their intention to file a claim. 

The state settlement agreement specifies that 18% of the net settlement funds will go towards adults and property damage, 79.5% will go to children, 2% to special education services in Genesee County, and 0.5% for business and economic loss.

Mayor Neeley reminded residents to be cautious and only use credible sources of information regarding water-related lawsuit settlements.

“We know there may be shameless individuals who try to take advantage and others who will try to spread misinformation for their own personal gain,” Mayor Neeley said. “Keep your guard up and make sure all information is valid by checking FlintSettlementFacts.org.”