The paper processing giant Stanson has agreed to pay more than $4.5 million in a class action lawsuit alleging that it has failed to properly label the recycled paper it processes.
The settlement was filed in U.S. District Court in Minneapolis on Friday.
Stanson said in a statement that it will continue to collect $2.5 billion in government benefits, including about $2 billion in state subsidies, $3.2 billion for employee benefits and $3 billion for workers compensation.
The company, which has been under fire for not doing enough to address the issue, has been the target of a $20 million class action filed by the New York Times.
The Times has also sued Stanson on behalf of about 2,400 other workers who allege they are victims of the company.
The lawsuit alleges that workers who receive benefits under the New Jersey state-mandated Workers’ Compensation program have been denied the right to seek compensation for illnesses that could be caused by their work.
The paper and packaging giant also says that it was aware of the problems with its paper processing plant in St. Paul, Minnesota, until last year.
According to the suit, the paper and plastic giant was unaware of the potential health risks of its paper-processing facilities until about two years ago.
The workers say they were unaware of any health concerns associated with the plant.
The complaint alleges that the company failed to conduct a safety review of the facility before it was approved for construction and did not provide workers with any additional training about how to safely process paper.
Paul, Minnesota plant is located in an industrial park where it processes around 500,000 paper products a day, according to the company website.
In 2014, the Minnesota Department of Commerce awarded the company a $4 billion federal grant to develop a new paper processing facility in the St. Cloud region.
The plant is designed to be environmentally friendly, according the Stanson statement.
The $2 million settlement comes after a lengthy trial.
St.anson sued the state in 2014 alleging that workers at its St. Louis, Missouri plant were denied benefits for ailments including headaches, dizziness and rashes, among other ailments.
The state had denied Stanson’s claims that the plant was unsafe.
In addition to the settlement, Stanson is also seeking unspecified class-action damages.