Motel 6, plaintiffs to renegotiate settlement over disclosing personal info to ICE

Arizona Attorney General Mark Brnovich asked a federal judge to deny approval of a class-action settlement involving Motel 6 employees voluntarily disclosing guests’ personal information to immigration agents.

The judge denied the request, but Brnovich got what he wanted: The parties notified the court Thursday that they will renegotiate the settlement.

Under the old settlement between the class-action plaintiffs and Motel 6, most of the $7.6 million in proceeds would go to four charities that deal with border and immigration issues and only a “fraction” to the people directly connected to the case.

The attorney general asked the judge to make the parties renegotiate a better settlement that sends more of the proceeds to the class members.

The judge denied the attorney general’s motion after the parties notified the court of the new negotiations.

Once a new settlement is reached, the state will review it to see if it is sufficient for those who were harmed, according to a spokesman for the attorney general.

A lawsuit was filed by the Mexican American Legal Defense and Educational Fund and the Ortega Law Firm in 2018 claiming Motel 6 staff members were giving guest information to U.S. Immigration and Customs Enforcement without evidence on their legal status.

A settlement agreement was filed in November. In January, U.S. District Court Judge David Campbell said he had concerns about the settlement, including whether class members would be treated equitably. He also expressed concern about the cost of training and other new requirements for Motel 6.

According to Brnovich’s brief, class members only would receive a small portion of cash from the settlement, while the charities would receive millions. Such a settlement can’t be “considered fair, adequate, or reasonable” compensation, Brnovich said.