U.S. Department of Labor

Judge won't dismiss lawsuit over jobless aid controversy

A judge says a lawsuit against a state agency over a computer system that claimed thousands of people had illegally obtained jobless benefits can go forward.

Judge Cynthia Stephens of the Michigan Court of Claims turned down the state's request to dismiss the case, saying in Tuesday's decision that she doesn't agree with the Unemployment Insurance Agency, which argued the case is moot because people who may have unfairly lost money have recovered it.

Denying benefits, even temporarily, can have serious consequences, Stephens said.

Jennifer Lord, an attorney who filed the lawsuit, said she'll now gather more evidence for the class-action case.

She and other...