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Michigan Unemployment Fraud Detection Suit Denied Class Status

Dec. 23, 2020, 8:54 PM

A suit alleging Michigan’s automated unemployment fraud adjudication system violated individuals’ due process rights was denied class status, after the Eastern District of Michigan concluded the named plaintiffs’ claims differed too much from those of the roughly 67,000 would-be class members.

Some of the the plaintiffs failed to list the lawsuit on their respective bankruptcy schedules, subjecting them to unique claim defenses, Judge David M. Lawson said in the Tuesday ruling. Those defenses could have become the focus of the litigation, he said.

Although the plaintiffs called the bankruptcy issue a red herring, the U.S. District Court for the Eastern ...