$600M Preliminary Settlement Reached In Flint Water Lawsuits

FLINT, MI — A preliminary agreement in the Flint water-related civil lawsuits has been reached, offering a state of Michigan-backed settlement of $600 million to parties who were affected by the city of Flint’s 2014 transition of its public water supply to the Flint River, with the majority of the money going to settle claims filed on behalf of children affected during the crisis.

Michigan Attorney General Dana Nessel announced on Thursday that the settlement has been agreed to following more than 18 months of negotiations, though several steps must be taken before money will be disbursed, Nessel said.

“Providing relief for the people of Flint and resolving these long-standing legal disputes has been a top priority for me since taking office,” Nessel said. “Flint residents have endured more than most, and to draw out the legal back-and-forth even longer would have achieved nothing but continued hardship.

"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. Ultimately, by reaching this agreement, I hope we can begin the process of closing one of the most difficult chapters in our State’s history and writing a new one that starts with a government that works on behalf of all of its people.”

Flint switched its water source from the city of Detroit to the Flint River to save money in 2014, while under control of a state-appointed emergency manager, the Associated Press reported. State environmental regulators advised Flint not to apply corrosion controls to the water, which was contaminated by lead from aging pipes.

Residents quickly began complaining that the water was discolored and had a bad taste and smell. They blamed it for rashes, hair loss and other health concerns, but local and state officials insisted it was safe, the Associated Press reported.

Researchers with Virginia Tech University reported in summer 2015 that samples of Flint water had abnormally high lead levels. Shortly afterward, a group of doctors announced that local children had high levels of lead in their blood and urged Flint to stop using water from the river.

Then- Gov. Rick Snyder eventually acknowledged the problem, accepted the resignation of his environmental chief and pledged to aid the city, which resumed using Detroit water.

Researchers said in late 2016 that lead was no longer detectable in many homes. But residents used bottled water for drinking and household needs for over a year, and trust issues remain between the residents and the water provided to them.

Gov. Gretchen Whitmer said that it was a priority of hers and Nessel's to achieve a settlement for families in Flint as soon as they could.

"Protecting all Michiganders and their access to clean water is a priority for my administration to make sure nothing like this ever happens again," she said. "What happened in Flint should have never happened, and financial compensation with this settlement is just one of the many ways we can continue to show our support for the city of Flint and its families."

Complete details will be made available once the formal settlement is completed, which is expected within about 45 days, Nessel said. That agreement, along with additional documents filed with the court will provide more details surrounding the settlement and outline the process for claimants going forward. Approval of the settlement agreement must also be given by several judges.

Some civil lawsuits related to the crisis remain, Nessel said. Among those are lawsuits filed by the AG's office against the engineering consultants Veolia North America and Lockwood, Newnam & Andrews, for their role in affecting the water supply. The state hopes that some of those entities will join the settlement within the next 45 days, Nessel said.

Nessel also reiterated that investigations are continuing in criminal cases relating to the crisis.

The preliminary agreement specifies that about 80 percent of the net settlement fund will be spent on children who were minors when first exposed to the Flint River water, with a large majority of that amount to be paid toward children age 6 and younger, and earmarking 2 percent to go to special education services in Genesee County. Another 18 percent of the net settlement funds are to be spent on adults and for property damage. Roughly 1 percent will go toward business losses.

If the settlement is approved and funds are distributed to claimants, Nessel said the state will have contributed over $1 billion to aid in the city’s relief and recovery efforts. Past contributions include a $97 million settlement agreement made available to replace all of the city’s lead service lines in its water system. To date, the state has spent more than $409 million in response to the Flint water emergency, according to the AG's office.

If the settlement receives final court approval, it is likely to be the largest in Michigan state government history, affecting tens of thousands of people and resolving more than a hundred cases in state and federal trial and appellate courts, Nessel said.

The amount of money to be paid to individual claimants won’t be determined until the claims process proceeds, Nessel said, explaining that the amount depends on the number of claims submitted and found to be eligible.

Information and reporting from the Associated Press was used in this report.