Michigan establishes $600M victim compensation fund after preliminary settlement in Flint class-action suit

Residents and business owners from Flint, Michigan, could have access to a massive compensation fund to help them recover from the water crisis that started in 2014.

A preliminary settlement announced Thursday in the class-action lawsuit between the residents of Flint and the top Michigan officials at the time of the water crisis revealed that the state intends to establish a $600 million victim compensation fund to help those harmed by the 2014 decision to change the city’s water source to an unsafe supply that had dangerously high levels of lead.

“The residents of Flint were victims of horrendous decisions by the state, its employees, and other defendants that have resulted in tragic and devastating consequences,” said Ted Leopold, an attorney representing the people of Flint. “While we can never undo the damage that occurred to the citizens and community of Flint, we are pleased that today we were able to secure a measure of justice for the … Flint community.”

The victim’s compensation fund will provide the most money to children who consumed the tainted water because lead is most toxic in the brains of growing children, according to a report from the Detroit Free Press. Children who were under the age of 18 at the time of the crisis will receive 80% of the $600 million, with the majority of that money going to children who were under 6 years old. The state will also set aside funds to establish long-term, special education resources for children whose brain development suffered because of the water.

“This settlement focuses on the children and the future of Flint, and the State will do all it can to make this a step forward in the healing process for one of Michigan’s most resilient cities,” Michigan Attorney General Dana Nessel said in a statement.

Nessel said the preliminary settlement will be formalized and completed before it moves to be approved by the court. Litigation against the Environmental Protection Agency and private firms that decided to switch the city’s water supply will still continue if the preliminary settlement is approved.

Related Content