Judge OKs $26.5M water settlement

ST. LOUIS, Mich. (AP) -- A federal judge has approved a $26.5 million settlement involving a central Michigan community and a chemical company accused of contaminating its water supply in the 1950s and 1960s.

U.S. District Court Judge Thomas L. Ludington in Bay City last Thursday signed an order approving the deal.

The city of St. Louis hopes the settlement with Rosemont, Ill.-based Velsicol Chemical Co. will help pay to replace the water system that serves the area, which is contaminated with a byproduct of the pesticide DDT.

The settlement of the 2007 lawsuit was approved this week by the City Council.

The city says money for the settlement includes $20.5 million from an insurance company for Velsicol and $6 million from a trust related to a former parent company.

Published: Mon, Apr 4, 2011