Class Action Lawsuit Settlement Could Force VA to Review Denied Claim Appeals
The U.S. Court of Appeals for Veterans Claims is reviewing a proposed settlement in a case called Freund v. Collins to correct legacy disability appeals closed by the Department of Veterans Affairs. If approved, the settlement would require audits and a notification process to reopen cases that the VA terminated between December 1990 and February 2025.
Class Action Lawsuit Settlement Could Force VA to Review Denied Claim Appeals
The litigation centers on a VA failure to properly process VA claim appeals. In cases where the VA received these appeals via fax or U.S. mail, it failed to digitize the information before its software ran automated checks. Because the database showed no record of the filing, the system closed their case based on an automated “sweep” without notifying the veteran.
These veterans were left unaware that their appeals had been terminated, waiting years for decisions that would never arrive. Some critics of the VA say it is worth noting that it took a class-action lawsuit to get any accountability for the Department of Veterans Affairs on this issue. Is this what VA Secretary Doug Collins calls “putting veterans first” at the VA?
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VA May Reopen Previously Denied Claim Appeals
The settlement agreement would, if approved, establish two tiers for remediation by the Department of Veterans Affairs.
- 8,258 cases were identified as having an error probability. The Department of Veterans Affairs must conduct manual reviews of these files to determine if they were closed prematurely.
- 64,599 cases where the agency must notify claimants or their survivors. These individuals may then request a review of their file status.
Veterans whose appeals are found to have been closed erroneously will have their cases reinstated. The settlement stipulates that the department must resume processing from the point of the error. This preserves the filing date, a step for calculating retroactive disability payments.
For veterans not included in the audit or notice groups, the settlement includes a one-year window to apply. During this period, you may petition the Department of Veterans Affairs to review files if you have documentation proving their appeal was closed in error.
Repoened VA Disability Appeal Cases
This settlement does not authorize a payment or benefit award. Instead, it provides the mechanism to restore cases to the queue. The U.S. Court of Appeals for Veterans Claims serves as the authority on the agreement, and the August hearing will determine if the measures address the harm caused by the administrative error.
Veterans who believe their appeal was closed due to the software “sweep” error mentioned above should track the status of the settlement. The U.S. Court of Appeals for Veterans Claims will decide on the agreement after an August 2026 hearing. If the court grants approval, the Department of Veterans Affairs will initiate the audit and notice processes.
How to participate:
- Check your correspondence for a notice from the Department of Veterans Affairs. The agency will send letters to those identified in the notice class.
- The court will post updates and final instructions on its website.
- Do you believe your appeal was closed incorrectly, but you did not receive a notice? Gather evidence. This includes copies of your “Substantive Appeal” form, proof of mailing, or fax confirmation receipts.
- After final court approval, veterans who were not included in the initial audit or notice lists will have one year to contact the Department of Veterans Affairs. Submit your request for review to the agency in writing, including your file information and evidence of a timely filing.
- This process is limited to legacy appeals closed between December 1990 and February 2025.
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About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
