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State denied immunity in class action suit on behalf of Michiganders falsely accused of fraud

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The state will not be granted immunity in a lawsuit filed on behalf of over 40-thousand Michiganders falsely accused of fraud.

An appeals court opinion, released Thursday, found the state violated due process by knowingly implementing a program that incorrectly identified cases of fraud.

By the state’s own accounting roughly 93 percent of the unemployment benefit fraud claims were made in error.

Tony Paris represents plaintiffs on the case. He says the false fraud claims led to bankruptcy, eviction, and seized tax returns.

“At the end of the day, somebody is going to have to pay for this” Paris said.

The three contractors that helped implement the program are also included in the suit.

Paris said he is bothered that the state has continued to minimize its role in implementing the program.

“Now that we have this new administration I hope that we continue to expose the problems and that contractors don’t get off the hook because they worked with the state and the state doesn’t get off the hook because they used contractors.”

Paris said it will take a long time for the case to move forward - but he’s pleased that the state will be included with the contractors who implemented the program in the suit.

Spokespeople with the new Attorney General’s office did not respond for comment on whether they would try and appeal the decision.

A spokesperson for the Michigan Unemployment Insurance Agency said they could not comment on pending litigation.