an equal and opposite reaction
Case Details for "U.S. Social Security Administration"
Social Security Administration Settles Benefit Class Action
The U.S. Social Security Administration on Tuesday reached a preliminary settlement in a class action lawsuit, stemming from allegations that it "unlawfully" withheld benefits from 80,000 eligible recipients, court documents show.
The settlement will result in more than $500 million in benefits to thousands of eligible recipients of social security who had their benefits suspended or denied since January 2007.
Additionally, the settlement permits eligible individual's whose benefits were denied between 2000 and 2006 to be given a chance to re-establish eligibility, court documents said. More than 200,000 people may see their benefits reinstated and/or receive back payments.
This settlement is part of a class action lawsuit that challenged the agency's use of a provision in federal law meant to prevent people from using government benefits to flee arrest.
According to the lawsuit, the social security agency used a flawed computer method that tracked beneficiaries who allegedly had arrest warrants issued against them. Rather than trying to determine which social security recipients were actually attempting to flee arrest, the agency used a computer system that matched names in warrant databases to social security recipients, the law center said. The name-matching method led to automatic benefit suspensions for many, despite the matches involving false or unproven allegations, minor infractions or long-dormant arrest warrants.
As of April 2009, the agency has stopped suspending or denying benefits because of the existence of a warrant, unless the warrant is issued in a criminal proceeding on a charge such as flight or escape, according to court documents.
Posted on:2009-08-12
Company: U.S. Social Security Administration
Class: n/a
Scope: Nationwide
Type of Case: Consumer
Settlement Administrator:
Contact Us Regarding This Settlement:
