LANSING, MI (WTVB) – It ruined lives, cost people their homes, caused divorces and even a few suicides. Now the Michigan Supreme Court has ruled that thousands who were accused of unemployment fraud by a glitch-riddled computer operated by the State of Michigan’s Unemployment Office should be able to sue to get compensation.
It was part of an effort by Governor Snyder to downsize state government. Officias reportedly let a computer alogarithm attempt to identify applicants involved in unemployment insurance fraud and 93% of the people it charged were innocent. They estimate the number at around 40,000.
Those laid-off workers were charged with fraud, and forced to refund any money they had been paid, with penalties and interest.
The state issued $20.8 million in compensation to the victims last year, but tsome say that hardly compensates them for the losses.
Some of those charged sued, and two of them who also filed class action suits had their cases upheld by the Michigan Supreme Court Friday. That means anyone who kept their records may be able to join the suit.
Attorney General Dana Nessel and the Director of the Unemployment Insurance Agency are reviewing the high court ruling.
(reporting from Jim Whelan)
