Defense Base Act Compensation Blog

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US Injured Contractors lawsuit alleges Blackwater failed to pay benefits

Posted by defensebaseactcomp on June 8, 2011

The lawsuit says Xe and its workers compensation insurers refused to provide benefits until forced to do so “after drawn out disputes in administrative courts.”

AFP June 8, 2011

WASHINGTON — Four former employees of Blackwater, the scandal-plagued security firm now called Xe, have filed a $60 million class action lawsuit claiming the firm failed to pay health and pension benefits to its employees.

Their lawyer, Scott Bloch, said Wednesday that Xe improperly classified thousands of its employees as independent contractors, allowing the company to avoid “millions of dollars in taxes, withholding and payments of benefits.”

“Blackwater made hundreds of millions of dollars from taxpayers and hired thousands of former veterans of military service and police officers,” said Bloch in a statement

It is a grave injustice to them who were mistreated and left without any health insurance or other benefits for their families, and left to fend for themselves in paying into Social Security and Medicare,” he said.

The lawsuit was filed Monday in federal court in Washington, and hopes to recover Social Security, unemployment insurance, health and other benefits for the four plaintiffs, all of whom were injured while working for Blackwater.

“Plaintiffs and many of those similarly situated came home wounded physically and psychologically from Iraq, Afghanistan and other countries, and needed health insurance to take care of difficulties for themselves and their families,” according to the complaint.

The lawsuit says Xe and its workers compensation insurers refused to provide benefits until forced to do so “after drawn out disputes in administrative courts.”

Read the entire article here

2 Responses to “US Injured Contractors lawsuit alleges Blackwater failed to pay benefits”

  1. Superman said

    I hope these guys go after Aig and CNA now.. this is cool as hell.

    I have heard they are… CNA and Aig are in deep shit.. because as criminal as
    Blackwater is they have nothing on CNA….

  2. […] Read more… […]

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