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$2.9M settlement proposed for chemical spill cases

Updated: Saturday, July 19 2014, 08:03 AM EDT

CHARLESTON, W.Va. (AP) -- At least $2.9 million could fuel studies in a proposed settlement between West Virginia businesses and residents and the company that contaminated their water supply.


The deal between lawyers for Freedom Industries and businesses and people who sued Freedom was filed Friday in Charleston federal court. It needs approval in both U.S. district and bankruptcy court.


The agreement would settle 24 lawsuits against Freedom. Many businesses sued to recoup profits they lost while shuttered for days. A January tap-water ban affected 300,000 people.


The money would come from Freedom's insurance policy. A board will decide how to spend it, with long-term health studies a possibility.


Attorney Anthony Majestro, representing some plaintiffs, says parties can opt out and file bankruptcy claims.


The agreement was first reported by The Charleston Gazette.

$2.9M settlement proposed for chemical spill cases


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