State of Michigan Unemployment Insurance Agency $55M Settlement for Improper Collection Claims

The State of Michigan Unemployment Insurance Agency (UIA) has agreed to pay $55,000,000 to settle a class action lawsuit for alleged improper collection activities. This settlement aims to compensate individuals who were subject to improper collection based on agency collection activity on any unemployment insurance claim filed from March 1, 2020, to April 25, 2024.

Can I Claim an Award?

You are potentially a member of the Settlement Class if the State of Michigan Unemployment Insurance Agency collected money from you by any method: (a) while a timely protest or appeal, or a late protest or appeal with good cause, was pending, (b) after you attempted to protest or appeal and were unable to access services, or (c) after you submitted a protest or appeal that was not timely processed, never processed, or later deleted.

What Awards Can Class Members Claim?

Under the Settlement, UIA has agreed to pay $55,000,000 into a "Qualified Settlement Fund". All Class Members may submit claims to receive pro rata cash payments to compensate for any improper collection. In addition to these cash payments, Class Members who believe they suffered additional damages are allowed to submit a claim for one or more enhanced award factors that justify a greater share of the fund.

Claims will be pro rata adjusted up or down based on the balance of the Settlement Fund after payments for expenses like attorneys’ fees, litigation costs, settlement administration costs, etc.

• Reimbursement of Amounts Collected by Agency: All Settlement Class Members who certify eligibility may recover pro rata from the Net Common Fund based on their Common Fund award points. One Common Fund award point shall be awarded for each dollar collected by the Agency and not yet refunded.
• Enhanced Award: All Settlement Class Members may be allowed to certify to one or more enhanced award factors that justify a greater share of the Net Common Fund. Settlement Class Members electing to certify for an enhanced award will be required to submit at least one form of agreed-upon documentation in order to qualify for an enhanced settlement award.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim an enhanced award. Settlement Class Members may be eligible to certify one or more enhanced award factors that justify a greater share of the Net Common Fund.

Documentation is required in order to qualify for an enhanced settlement award:

• Bankruptcy: Attach any bankruptcy court documentation showing your name and case number on it.
• Eviction/Foreclosure: Attach any eviction or foreclosure documentation showing your name and date of eviction or foreclosure.
• Mental Health Treatment: Attach a bill or appointment confirmation for a mental health provider showing your name and the provider. Do not provide diagnosis or treatment details.
• Repossession: Attach any applicable documentation that shows your name and date of the repossession.
• Other: Any applicable documentation to support your claim.

How to Claim Your Award

To receive a benefit under the Settlement, you must complete and submit a Claim Form. Every Claim must be made on a form and can be submitted online.

The Settlement Administrator, Analytics, will decide whether and to what extent any Claim made on each Claim Form is valid. The Settlement Administrator may require additional information.

$55,000,000 Settlement Fund Breakdown

The total settlement amount is $55,000,000. This amount will be used to compensate eligible class members, cover reasonable attorneys’ fees, litigation costs and expenses, the expenses of the Settlement Administrator, Notice Administrator, and QSF Settlement Administrator, and the Named Plaintiffs’ Service Payment.

Class Counsel will ask the Court for an award for attorneys’ fees up to one-third of the Qualified Settlement Fund ($18,333,333.33), plus reasonable litigation expenses, as well as service awards of $25,000.00 for each Class Representative.

Important Dates

• Claim Submission Deadline: November 4, 2024
• Exclusion Deadline: November 4, 2024
• Objection Deadline: November 4, 2024
• Final Approval Hearing: March 20, 2025

Why is There a Class Action Settlement?

The lawsuit claims that Defendant engaged in improper collection activities. Improper Collection means money collected from a Class Member by any method: (a) while a timely protest or appeal, or a late protest or appeal with good cause, was pending, (b) after a claimant attempted to protest or appeal and was unable to access services, or (c) after a claimant submitted a protest or appeal that was not timely processed, never processed, or later deleted.

Note the defendant denies these claims and says it did not do anything wrong. The Court has not decided in favor of the Plaintiff or Defendant. Instead, both sides agreed to the Settlement. The Settlement avoids the cost and risk of a trial and related appeals, while providing benefits to members of the Settlement Class.