Social Security to Pay $500M Over Database Snafu
August 24, 2009[From InternetNews.com]
The Social Security Administration has agreed to pay more than $500 million in benefits that were withheld from 80,000 people since 2007 due to an errant computer program.
The preliminary agreement, approved by U.S. District Court Judge Claudia Wilken in Oakland, Calif., resolves the class-action suit Martinez v. Astrue. In that suit, the plaintiffs argued that a 1996 law -- designed to prevent criminals receiving government benefits from fleeing prosecution -- resulted in innocent individuals being denied Social Security payments.