Michigan expected to pay $600M in Flint settlement over water crisis

Flint residents had to use bottled water after the city's drinking water was contaminated with lead. On Thursday, prosecutor Ted Leopold announced a $600 million preliminary settlement. File Photo by Molly Riley/UPI
Flint residents had to use bottled water after the city's drinking water was contaminated with lead. On Thursday, prosecutor Ted Leopold announced a $600 million preliminary settlement. File Photo by Molly Riley/UPI | License Photo

Aug. 20 (UPI) -- A prosecutor said Thursday that the state of Michigan is expected to pay $600 million in a preliminary settlement of civil lawsuits over the drinking water crisis that began in Flint, Mich., in 2014.

The drinking water crisis began in April 2014 when Flint changed its water source from treated Lake Huron and Detroit water to water from the Flint River treated at the Flint Water Treatment Plant. Officials failed to apply corrosion inhibitors in the process leading to aging pipes leaching lead into the water supply, exposing residents to toxic contamination, scientific studies showed.

"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 Florida attorney Ted Leopold, who a federal judge appointed to lead a class-action lawsuit against the state, along with Royal Oak, Mich., attorney Michael Pitt. "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 $600 million settlement would be historically large, accounting for more than the $546 million the state has paid out in court judgments and settlements for every lawsuit against it in the last 10 fiscal years, according to data from the Senate Fiscal Agency.

The settlement includes hundreds of millions of dollars for a victim compensation fund with nearly 80% of the payments going to residents who were under age 18 at the time of the crisis, since they are especially vulnerable to toxic effects of lead that can impact brain development.

It also includes a designated $12 million fund to provide special education for students who suffer health and behavioral effects from lead poisoning.

Pitt said that some of the $600 million would go toward fair compensation for attorney fees, but said it was too soon to say the exact amount.

Along with the state of Michigan, the Michigan Department of Environmental Quality and individual state defendants, such as former Michigan Gov. Rick Snyder, were listed as parties to the settlement.

The settlement allows litigation to continue against the U.S. Environmental Protection Agency and private firms involved in the switch of water sources, including Veolia North America and engineering form Lockwood, Andrews and Newman.

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