City of Detroit

Allegations that the City of Detroit charged unfair water rates to customers between Aug. 1, 2022, and May 31, 2026.

The City of Detroit has agreed to a $4.45 million class action settlement to resolve claims that it charged unfair water rates between Aug. 1, 2022, and May 31, 2026. The lawsuit alleged that the city's "inclining block" rates resulted in higher charges for higher-volume users, exceeding the city's cost of servicing these users. Class members who are current customers will receive a credit on their water account over six months, while former customers will receive a cash refund. The city will also reduce its tier 2 volume rate from Jan. 1, 2027, through June 30, 2027.

• Consumers and entities who received water services from the City of Detroit between Aug. 1, 2022, and May 31, 2026, and who used an average of at least 1.0 MCF of water per month...