DETROIT (AP) – A group of Michigan residents wrongly accused of fraud while collecting unemployment benefits has won a key ruling in a lawsuit against companies that designed or managed the automated system.

The lawsuit in Detroit federal court also targets some key state officials who were associated with the state’s unemployment agency.

Thousands of people were falsely accused of cheating Michigan’s unemployment system. Some had to file for bankruptcy.

Federal Judge David Lawson last week said a lawsuit can go forward on a variety of constitutional claims. He says there was “no conceivable rational basis” for terminating benefits, even after learning that the automated anti-fraud system was a bust.

A lawsuit in state court was dismissed. Gov. Rick Snyder has talked about creating a fund for victims.


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  1. Grace Thorn says:

    Great for everyone!! When the State causing citizens bankruptcies and economic hardship b/c companies can aid the agenda of State Gov’ts austerity agenda……they MUST compensate…as if they can ever compensate for what false accusations and losing everything over it can ever do. Make sure State Gov’ts cannot do this again! It should be a CRIME and punishable as such.

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