Freund v. Collins Settlement Explained: Thousands of Veterans May Qualify for VA Back Pay (Updated July 28, 2026)

CCK Law: Our Vital Role in Veterans Law

Thousands of veterans may be entitled to VA back pay after a class action lawsuit revealed that VA’s automated tracking system may have wrongly closed disability appeals for decades, without ever informing veterans that their appeals were no longer being processed by VA.

The case, Freund v. Collins, centers on the Veterans Appeals Control and Locator System (VACOLS), the database VA once used to track legacy appeals, and the many clerical errors it could have contributed to making.

A proposed settlement to Freund would require VA to audit tens of thousands of closed appeal files dating back to 1990 and reactivate the ones closed by mistake, potentially unlocking years of retroactive VA disability compensation for affected veterans.

Here is what happened, who may qualify, and what to do next:

• The Freund v. Collins lawsuit affects legacy appeals VA closed between December 12, 1990, and February 6, 2025, for an allegedly late or missing Substantive Appeal.
• VA has agreed to audit 28,258 flagged files automatically and send notice to an additional 64,599 files inviting a review.
• A reactivated appeal keeps its original effective date, meaning back pay could stretch back decades for some veterans.
• The settlement is not yet final; a fairness hearing is scheduled for August 13, 2026.

What Is VACOLS, and What Mistake Did VA Make?

For decades, VA tracked older disability appeals in an electronic database called the Veterans Appeals Control and Locator System (VACOLS). Once a month, VACOLS ran an automated sweep of pending legacy appeals, closing any that did not have a Substantive Appeal (i.e., VA Form 9) submitted on time.

“The trouble is that many of those Substantive Appeals were actually filed on time,” says Michael Lostritto, partner at CCK Law. “VA was simply slow to log the paperwork into the system, so the appeal looked missing when it was not, and the veteran was told nothing.”

As a result, VACOLS mistakenly closed thousands of active VA disability appeals due to what was essentially a series of clerical errors. Generally, these appeals were automatically closed without any kind of notice sent to veterans that their disability claims were no longer being processed by VA.

Per VA data submitted in the Freund litigation and cited in the Court of Appeals for Veterans Claims (CAVC) order: Of a sampled group of 5,456 closed legacy appeals that VA went back and reviewed following this discovery, it was revealed that around 3,806 (or approximately 70 percent) of those appeals had actually been closed in error.

Veterans should note that this data applies only to VA’s legacy appeals system, not the newer Appeals Modernization Act process.

Watch CCK Law Partner Michael Lostritto explain what VACOLS is and how VA made this mistake:

What Is Freund v. Collins?

Freund v. Collins, case number 21-4168, is a class action lawsuit currently pending before the CAVC that seeks to address the VACOLS mistake and how it may have deprived veterans of disability compensation they had actually qualified for.

“The lawsuit is being brought on behalf of anyone whose VACOLS appeal was closed between December 1990 and February 2025 for a supposedly late or missing Substantive Appeal, and whose appeal is still closed today,” Michael Lostritto says.

Some veterans may have had their appeals mistakenly closed all the way back to 1990, while others may be as recent as February 2025. This is important because, should the Freund lawsuit be approved, these veterans may be awarded back the original effective date of their appeal, potentially unlocking decades of back pay owed to them by VA.

The case takes its name from petitioners Mark Freund, whose late sister filed a claim for PTSD that VA denied, and Mary Mathewson, the widow of a veteran who sought Special Monthly Compensation (SMC) based on the need for Aid and Attendance. Though these claims had Substantive Appeals filed in a timely manner, VACOLS still erroneously closed both their files without notice, in tension with 38 CFR § 19.32.

As of 2026, both original petitioners have since passed away, and their family members continue the lawsuit in their place.

Who Is Affected by the Freund Class Action Lawsuit?

“You are a Freund class member if you are a VA benefits claimant whose case was closed between Dec. 12, 1990, and Feb. 6, 2025, on grounds that you did not file a timely Substantive Appeal, and your case is still closed” (VA Office of General Counsel, April 15, 2026).

Per VA’s own official notice of the Freund lawsuit, it is possible that thousands or even tens of thousands of veteran files may qualify under these criteria. In response, as part of the Freund settlement, VA has agreed to manually review 28,258 files that it has determined were possibly closed due to the VACOLS error. If VA discovers such an error was made, it will reopen the veteran’s file, inform the claimant that the file has been reactivated, and then process the case “expeditiously.”

VA will also send notices to the claimants of another 64,599 closed appeal files who may have been impacted by the error. Though these other claimants will not have their files reviewed automatically by VA, after receiving the notice, the claimant will have the option to request that VA manually review their file.

It is also possible that there are many more veterans who have been affected by the VACOLS error but who have not had their files flagged by VA. If these veterans believe their claim may qualify for the Freund lawsuit, they will likely have to reach out to VA and request that their file be reviewed, as well.

The table below provides a simple breakdown of the three groups that may qualify for this lawsuit:

Group	Who Is Included	What Happens Next
1. Claimants who will receive an automatic audit of their files	The claimants of 28,258 files VA flagged as most likely to contain a timely Substantive Appeal	VA must manually review each file, reactivate those that qualify, and notify claimants within 18 months of final approval.
2. Claimants who will receive a notice from VA and must then request a review	The claimants of 64,599 additional files that met some, but not all, of VA’s search criteria	VA will send notice to affected veterans; the veteran must then request an individual review.
3. All other potential claimants affected by the VACOLS error	Any veteran or claimant who believes their legacy appeal was wrongly closed but was not flagged by either VA review	The veteran or a representative must proactively contact VA to request review within 365 days of the lawsuit’s final approval.

How Far Back Does Freund v. Collins Back Pay Go?

Back pay awarded from Freund v. Collins could go as far back as 1990. This is because the Freund lawsuit covers the period between December 1990 and February 2025, and so any veteran or claimant whose appeal was mistakenly closed by the VACOLS error during that period may qualify to earn retroactive compensation going back to their original effective date.

“When VA confirms a timely appeal was closed by mistake, it reactivates that appeal,” Michael Lostritto says. “The case picks up where it left off; the veteran does not start over. This matters for back pay because a reactivated appeal is treated as if it were never closed. A later grant can carry an effective date reaching back to the veteran’s original claim. For some veterans, that could mean many years of retroactive benefits.”

Below is a table illustrating the potential, approximate amounts of back pay a veteran might receive based on their eventual disability rating and effective date under the Freund v. Collins lawsuit:

Rating	Effective Date: 1990	Effective Date: 2000	Effective Date: 2010	Effective Date: 2020
10%	~$52,048	~$41,512	~$28,384	~$12,684
50%	~$320,735	~$258,335	~$178,295	~$79,641
70%	~$511,285	~$411,913	~$284,497	~$127,131
100%	~$1,111,826	~$896,750	~$619,478	~$276,878

 

Note that the table above only provides rough estimates of the amount of back pay a single veteran with no dependents could receive. It does not take into account other factors, such as Special Monthly Compensation (SMC).

What Happens After I Get a Freund v. Collins Letter?

“A fairness hearing is scheduled for August 13, 2026, where the court will decide whether to approve the settlement,” Michael Lostritto says. “So here is what to do: if a veteran gets a letter that mentions Freund, do not ignore it, even if the appeal is decades old.”

If a veteran receives a letter, it might indicate that they are part of one of the first two groups whose files VA may review as part of the Freund settlement:

• Group 1: If the veteran’s file is among the 28,258 files in the first group, VA will automatically audit their appeal to determine if it was wrongly closed by the VACOLS error. If it was, VA will reactivate their appeal and notify them within 18 months. These veterans will mostly have the work done for them, but they should still keep in contact with VA to stay informed on the process.
• Group 2: If the veteran’s file is among the 64,599 files in the second group, VA will send the veteran a letter informing them that their past appeal may have been affected by the VACOLS error. However, VA will not automatically review these files. Instead, the veteran must reach out to VA and request an individual review.

Should the Freund v. Collins lawsuit proceed and the veteran’s appeal was determined to be affected by the VACOLS error, it is possible that they will receive retroactive compensation going back to their original effective date.

What if I Did Not Get a Letter, but Think My Appeal Was Mistakenly Closed?

It is possible that a veteran’s past appeal could have been closed due to the VACOLS error, but for VA to miss this fact and fail to flag their claim. In this case, it is unlikely the veteran will receive a letter from VA regarding the lawsuit.

“However, if no letter arrives, a veteran may still be able to raise the issue,” Michael Lostritto says. “If someone believes their appeal was one of those wrongly closed, the settlement gives class members a limited window after final approval to ask VA to review the case.”

In other words, even if a veteran receives no letter, it does not mean the Freund v. Collins lawsuit does not apply to their claim. If this is the case and the veteran believes the VACOLS error may have cost them compensation, that veteran should contact VA and request a review of their past appeal in relation to the Freund lawsuit. They will have 365 days to do this after the final approval of the lawsuit.

How Do I Check My VA Appeals Status?

For veterans who are uncertain about where their past appeal stands, there are several options they can pursue to check that appeal’s status:

• Using VA’s online appeal status tool;
• Calling VA at 1-800-827-1000 (TTY: 711); or
• Contacting a VA-accredited representative to guide them through the process.

Claimants with further questions about the Freund lawsuit should contact John D. Niles, the class counsel for the case. He can be reached at [email protected] or via mail to Carpenter Chartered, P.O. Box 2099, Topeka, Kansas 66601.

Frequently Asked Questions About Freund v. Collins

Can a surviving spouse file a Freund v. Collins claim?

Yes, a veteran’s surviving spouses, children, and other eligible dependents can generally pursue a wrongly closed legacy appeal on a deceased veteran’s behalf, including a Freund claim. In fact, both named petitioners (Freund and Mathewson) in this case passed away and were replaced as claimants by their family members.

How long does VA back pay take after appeal reactivation?

There is no set timeline. VA has up to 18 months after final approval to audit the 28,258 flagged files, and reactivated appeals then return to the Board of Veterans’ Appeals’ existing docket, which can add substantial time before a final decision and any back pay is issued. All in all, it could take months or even years for claimants to receive their back pay should the Freund v. Collins lawsuit proceed.

Is the Freund v. Collins settlement final?

Not yet. The CAVC certified the class on March 18, 2026, and the parties filed a proposed settlement soon after, but the Court has not given final approval. A fairness hearing is scheduled for August 13, 2026, where the Court will decide whether to approve the settlement.

Can I object to the Freund v. Collins lawsuit?

Not anymore. The window for filing a formal objection to the proposed settlement closed on May 15, 2026. Veterans who believe they belong in the class can still contact VA or an accredited representative to ask about their case, even though objections are no longer being accepted.

Need Help With Your VA Appeal? Contact CCK Law