Mad Room Litigation Settlement Agreement

This settlement resolves all claims brought against the City of Miami by the plaintiffs in the Mad Room Litigation pending in the United States District Court. If the plaintiffs had been successful at trial, they would have been entitled to recover attorney's fees, which 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. By resolving the case now, the City avoids the risk of a jury award exceeding the settlement amount, in addition to substantial attorney's fees. Continuing to litigate would also result in further costs for the City, and this settlement prevents those additional expenses.

The net effect of the settlement totals $12.2 million, spread over two fiscal years:

•     $9 million in fiscal year 2024-25
      •     $3.2 million in fiscal year 2025-26

However, the financial obligation of the city amount will be reduced by $4 million due to the City's insurance policy, ultimately bringing the City's financial responsibility to around $8.2 million over two fiscal years. Resolving this matter now also eliminates the potential for any future financial burdens on City taxpayers.