SETTLEMENT FOR DISABLED VETS.

OTTAWA • The federal government has agreed to pay $100 million to settle a four-year legal battle with disabled veterans, who had launched a class-action lawsuit after some of their financial benefits clawed back.

The settlement, which must still be approved by the Federal Court, would provide more than 12,000 of veterans with payments of between $2,000 and $50,000 depending on when they served and the severity of their disabilities.

It is the latest in what could be a string of such settlements as the Liberals have indicated that they plan to resolve several other classaction lawsuits brought forward by current and retired military personnel.

“I believe the proposed settlement is fair and provides both sides with needed closure,” Veterans Affairs Minister Seamus O’Regan said in a statement announcing the agreement in principle.

“Now that this matter may soon be behind us, the government of Canada will continue working to better serve veterans and their families. I believe this decision shows that we intend to ensure that veterans in Canada are better off now than they were before.”

The lawsuit was launched in 2014 after the federal government clawed back financial assistance from thousands of low-income veterans because they were also receiving disability pensions for injuries sustained while in uniform.

The veterans alleged that the deductions, which took place between April 2006 and May 2012, violated their charter rights by discriminating against them because they were disabled.

A Federal Court hearing is scheduled for December, where the government and lawyers representing the veterans are expected to ask for the settlement to be approved.

The settlement represents the latest win for veterans and military personnel after several previous proposed class-action lawsuits were similarly resolved before reaching trial, most notably an $887-million agreement in 2013 for military pension clawbacks.