Department of Veterans Affairs Headquarters (Photo: Steve Albers)
A proposed class action settlement could give Veterans and eligible survivors another chance to have old VA benefit appeals reviewed.
The case, known as Freund v. Collins, focuses on VA appeals that were closed in the agency’s legacy appeals system. According to Stars and Stripes, the lawsuit says some Veterans may have had their VA benefits appeals closed because of administrative mistakes or errors tied to VACOLS, the system the VA used to track legacy appeals.
VACOLS was used to track and manage appeals in the older VA appeals process. Some appeals were allegedly closed after the system treated them as if Veterans had missed a filing deadline, even when a timely appeal may have been submitted.
VA’s official notice states that the class covers claimants whose VACOLS appeal files were closed from Dec. 12, 1990, through Feb. 6, 2025, after VA records showed no timely Substantive Appeal, as long as those appeals are still closed. A Substantive Appeal was the filing that allowed a claimant to continue an appeal to the Board of Veterans’ Appeals after receiving a Statement of the Case.
VA says the class definition applies only to legacy appeals, meaning the original VA decision generally had to come before Feb. 19, 2019.
Under the proposed settlement, VA would manually review 28,258 closed appeal files that may contain a timely Substantive Appeal. When VA identifies an appeal that was closed in error, the case will be reopened and returned to the review process. VA would also send notices for up to 64,599 other closed appeal files, allowing those claimants to ask for another review.
The settlement does not automatically approve disability benefits or create a new benefit program. Instead, it could reopen the door for appeals that should not have been closed. If a reactivated appeal is later granted, some claimants could potentially receive benefits tied to the older claim date.
The U.S. Court of Appeals for Veterans Claims has scheduled a fairness hearing for Aug. 13 in Washington, D.C. The court will decide whether the proposed settlement is fair, reasonable, and adequate. VA says the hearing is expected to be livestreamed and recorded.
The case comes as VA continues to report faster processing of current disability claims. In June, VA announced that it had processed more than two million disability benefits claims in fiscal year 2026 as of June 1.
If the court approves the settlement, VA will have to review thousands of old files and determine whether some Veterans were denied the chance to complete the appeals process they had already begun.
Veterans, surviving spouses, and substitute claimants who receive a notice should read it carefully and consider contacting a VA-accredited representative, attorney, or Veterans Service Officer. VA’s notice also lists class counsel John D. Niles as the contact for questions about the Freund settlement.
Author: Rikki Almanza
Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted family connection to the military, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.
