Miami Courant

The City of Miami has reached a settlement in the Mad Room Litigation case pending in the United States District Court. This agreement resolves all claims brought against the city by the plaintiffs. According to city officials, if the plaintiffs had succeeded at trial, they would have been entitled to recover attorney's fees that could have far exceeded the settlement amount.

"While the City firmly believes it has done nothing wrong, settling at this stage is a sound financial decision," stated a representative from the City of Miami. The decision to settle aims to avoid the risk of a jury award exceeding the settlement amount and substantial attorney’s fees. Additionally, continuing litigation would incur further costs for the city, which this settlement helps prevent.

The total settlement amounts to $12.2 million, distributed over two fiscal years: $9 million in fiscal year 2024-25 and $3.2 million in fiscal year 2025-26. However, due to an insurance policy held by the city, its financial obligation will be reduced by $4 million, ultimately bringing its responsibility to approximately $8.2 million over two fiscal years.

City officials emphasized that resolving this matter now eliminates potential future financial burdens on taxpayers.