Flint insurer agrees to add $20 million to state settlement: Total so far is $641.25 million – EPA, other engineering firms have not yet settled

FLINT, Michigan–The City of Flint has worked with its insurance company to add an additional $20 million to the state’s water-related civil lawsuit settlement to further compensate the residents of Flint. This tentative agreement, which requires City Council approval, will resolve outstanding lawsuits at no cost to the City and no cost to taxpayers.

The detailed settlement agreement for the Flint water-related civil lawsuits is being filed today in the United States District Court for the Eastern District of Michigan. It includes the $600 million proposed settlement by the state of Michigan as well as 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 — bringing the total for the state settlement agreement to $641.25 million.

The settlement would resolve all civil lawsuits for all participating parties. It is not considered the final total settlement for water-related lawsuits. Litigation is continuing against the United States Environmental Protection Agency as well as the city’s other former engineering consultants — Lockwood, Andrews, and Newnam, Inc., and Veolia North America, Inc.

“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.”

The detailed settlement agreement was submitted to Judge Judith Levy of the United States District Court for the Eastern District of Michigan. Judge Levy will review the agreement as part of a motion for preliminary approval, and later issue a ruling on whether the settlement meets certain legal standards. A hearing will be held prior to her ruling. If preliminary approval is granted, then the claim registration process can begin, allowing Flint residents the opportunity to indicate their intention to file a claim. For more information on this process and details of the settlement agreement, go to FlintSettlmentFacts.org.

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

Mayor Neeley reminded residents to use caution and make sure to use only 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.”