First responders and recovery workers injured at the World Trade Center site following the Sept. 11th terrorist attacks will get an additional $125 million in a new settlement announced Thursday.

The deal’s total payout is proposed to rise to $712.5 million. In March, a prior $657 million settlement was thrown out by U.S. District Judge Alvin Hellerstein in Manhattan. He has indicated the amended agreement is “fair and reasonable.”

A hearing is set for June 23 for parties in the settlement to comment. Plaintiffs will have until Sept. 30 to review the deal, which needs 95% support from plaintiffs to proceed.

The agreement was reached among New York City, contractors and subcontractors, attorneys for more than 10,000 plaintiffs and the WTC Captive Insurance Co., an insurer created by a $1 billion grant from the Federal Emergency Management Agency to insure personal-injury claims by city workers and others at what became known as Ground Zero.

Under the new accord, plaintiff attorney fees will be reduced by more than $50 million. Meanwhile, WTC Captive will pay an additional $50 million to $55 million while the repayment of some workers’ compensation benefits will be waived.

Workers claiming debilitating respiratory illnesses, such as severe asthma, as a result of exposure at the World Trade Center and its environs could receive between $800,000 and $1.05 million. Compensation of about $1.5 million is included for death claims, while all qualifying plaintiffs would be enrolled in a special insurance program.

(Source: WSJ)