Over 450 false claims rejected in $1.1 billion compensation case
A Florida judge has invalidated hundreds of fraudulent claims submitted to a $1.1 billion settlement fund for victims of the Champlain Towers South condominium collapse, which claimed 98 lives in June 2021.
More than 450 of the 741 claims, many seeking approximately $50,000 each, were deemed unrelated to the tragedy. Court-appointed receiver Michael Goldberg described these claims as attempts to “exploit this tragedy at the expense of true victims.”
During a brief hearing, Miami-Dade Circuit Judge Michael Hanzman confirmed that none of the false claimants appeared to provide evidence under oath. “They were required to submit proper documentation and attend the hearing, which they failed to do,” the judge stated.
Goldberg traced many of the dubious claims to individuals from western states, including California, Oregon, Washington, and Colorado, and linked them to a website allegedly promoting guidance on filing unsubstantiated claims in class-action settlements. These claims were disproven using government records, first responder accounts, and court documents.
The settlement fund, approved in June, is designed to compensate families of those who perished, as well as individuals who lost property in the collapse. The fund comprises contributions from 37 sources, such as insurance companies, engineering firms, and a neighbouring luxury condominium suspected of contributing to structural issues at Champlain Towers South.
A Dubai-based billionaire developer also purchased the collapse site for $120 million, adding to the settlement pool.
Champlain Towers South, constructed in the early 1980s, had a history of maintenance issues, raising concerns about its original construction quality and inspections. Experts are also investigating potential links to sea level rise and saltwater damage caused by climate change.
The National Institute of Standards and Technology continues to investigate the collapse, with final conclusions expected in the coming years. Meanwhile, a hearing next week will determine the allocation of legal fees, estimated to total $100 million.
