FLINTWATER

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UPDATE REPORT FROM THE SPECIAL MASTER

ON THE FLINT SETTLEMENT PROGRAM

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The process for handling claims has been complicated and lengthy. The process is designed to maximize the number of claimants who qualify for settlement funds. To avoid the denial of eligible claims, the Settlement provides that claimants are permitted to seek reconsideration and to appeal when their claims are denied. The ongoing work is directly related to finalizing the process with integrity and to assisting claimants so that they are able to qualify for the settlement. Importantly, the Special Master has instituted procedures and obtained data from third parties to assist claimants who are unable to locate certain documents.

 

The claims are reviewed carefully to protect the settlement fund from being diluted by ineligible claims. For example, the claims administrator has received claims from individuals who were not in the City of Flint during the water crisis or who did not own or rent residential property in the City of Flint.

 

As noted, any claimant who receives an initial notice of determination on their claim and wishes to dispute the determination, may request  reconsideration. As of December 20, 2024, the claims administrator had received 12,847 reconsideration requests.

 

All claimants have the right to seek an appeal if they wish to dispute the decision on reconsideration. The appeals are reviewed by the Special Master. As of today, the Special Master has received over 1,000 appeals – each of which is reviewed carefully to assure that eligible claimants receive the correct determination.

 

The review tasks are not complete: there are still reconsideration requests and appeal requests that require final review, and thousands of claimants still have the right to submit appeals and reconsiderations.

 

As of January 8, 2025, the claims administrator has sent 65,596 notices to claimants to inform them of the result of their claim or reconsideration. Of that total 54,260 are initial notices and 11,336 are notices following requests for reconsideration. These notices have been issued through two procedures: notices for claimants who are represented are uploaded to the law firm claims portal and the law firm then notifies their client. Notices for claimants who are not represented are mailed to the claimant. (A total of 13,540 claimants have been sent notices by mail.) A claimant who is not represented by a law firm and has not received a notice, may send an email to flintwaterclassaction@pittlawpc.com or call 866-536-0717 to inquire about their notice.

 

As of January 8, 2025, 27,581 claims have been approved (for 25,516 individual claimants.) Of the individual claimants, 12,170 were adults at the time of the water crisis and 13,346 were minors at the time of the water crisis.

 

Of the total claims approved – 15,363 are injury claims; 12,082 are properties that have been found eligible for payment; and 136 are business claims.

 

Once all reconsiderations and appeals of claims are completed and final, claimants who are approved will receive a letter advising of the amount of their payment and the process for electing the form of payment. Adult claimants will be able to elect digital payments, direct deposit, or check payments. In general, digital payments and direct deposit payments are more secure and preferred. There will be a process for claimants to make their elections directly on a secure online platform so that each claimant can provide the necessary instructions for payment. These instructions can be provided by counsel for those claimants who are represented. There will be a procedure for those who cannot access an online platform to make their elections via a paper submission. The Court and Special Master are developing a check distribution process to ensure that claimants who would like to receive paper checks can receive the checks securely. The bank that issues the checks will waive any check cashing fees for those who do not have accounts.

 

To be clear: the Special Master has not yet issued payment notices to any law firm or individual claimant. Those notices will be issued as soon as possible in the near future. Claimants’ lawyers cannot provide any more detail than this at the current time.

 

Claimants who are minors must receive payment through a structured settlement or a trust according to the settlement terms and state law. The Court has already approved two trusts – one special needs trust and one preservation trust. Claimants who are disabled and who receive needs-based assistance (including adults) should use the special needs trust. That is the best way to ensure that the claimant can continue to receive needs-based benefit payments. Other claimants can elect the preservation trust or the structured settlement (and most minor claimants have already made that election.) In each case, the claimant’s representative will need to sign the structure or trust forms. Once those forms are finalized, the funds will be wired to the structure annuity provider and the trustee, as applicable.

 

We anticipate that the letters with payment information will be distributed soon – but as noted they cannot be distributed until all reconsideration and appeal deadlines have passed and all reconsiderations and appeals have been finalized. Some claimants still need to provide information to the claims administrator to finalize their claim. Anyone who received a letter advising of information that must be provided (mostly identification and signatures) should submit the information as soon as possible. Any claimant who has questions should contact their lawyer or class counsel if they are not represented by a specific law firm. Claimants may also contact the Special Master’s office with questions.

 

The Special Master can be reached at Deborah.Greenspan@blankrome.com.​​

 

Date: January 8, 2025

/s/ Deborah E. Greenspan                     

Deborah E. Greenspan

Special Master