Judge OKs $26.5M water contamination settlement

ST. LOUIS, Mich. (AP) - A federal judge has approved a $26.5 million settlement for a central Michigan community whose water supply was contaminated by a chemical company in the 1950s and 1960s.

U.S. District Court Judge Thomas L. Ludington in Bay City signed an order approving the deal on Thursday.

The city of St. Louis, Mich., hopes the settlement with Rosemont, Ill.-based Velsicol Chemical Co. will help pay to replace the water system that serves the area, which is contaminated with a byproduct of the pesticide DDT.

The settlement of the 2007 lawsuit was approved this week by the City Council.

The city says money for the settlement includes $20.5 million from an insurance company for Velsicol and $6 million from a trust related to a former parent company.