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Social Security Loses Class Action, Will Pay $500 Million in Benefits

A preliminary $500 million settlement has been reached in the class action lawsuit brought against the US Social Security Administration, over allegations that the administration "unlawfully" withheld benefits from 80,000 eligible recipients.

The settlement, if approved, will result in thousands of people finally receiving benefits after having them suspended or denied beginning in January 2007.

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Last updated on Aug-12-09