Tyler Technologies Seeks Approval for $1.5M NC Settlement

Attorneys move to resolve class action claims regarding software issues that led to wrongful arrests and delayed releases.

Updated on Oct. 26, 2026 in Criminal Justice

Tyler Technologies Seeks Approval for $1.5M NC Settlement

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Do you trust that government software transitions are implemented without compromising your basic civil rights?

A proposed $1.5 million class action settlement has been filed in the U.S. District Court for the Middle District of North Carolina to compensate individuals affected by software transition errors. The agreement aims to address allegations of wrongful arrests and prolonged jail stays following the state's eCourts rollout.

Why it matters

The settlement follows claims that technical failures during a software transition resulted in individuals being detained on invalid warrants or held beyond their scheduled release times. Tyler Technologies denies any wrongdoing as the court considers the proposed resolution.

The proposed settlement includes $2,800 per wrongful arrest and a $500 base payment for releases delayed by over six hours. Claimants may receive an additional $350 for each hour delayed beyond that threshold, up to a maximum cap of $5,000 per person.

The players

Tyler Technologies

This is a technology company that provides software services to government agencies and courts.

Garry L. McFadden

He is the Mecklenburg County Sheriff whose office remains a target of pending claims related to the case.

The details

Eligible class members may seek compensation through an online or mail-in claims process should the court approve the agreement. Attorneys plan to coordinate with community organizations to ensure impacted North Carolina residents are notified of their rights.

The litigation regarding software transition allegations has spanned three years.
The settlement proposal was presented in October 2026.

Legal Context

The settlement arises from the complex implementation of the North Carolina eCourts software rollout, which has faced scrutiny over system-wide malfunctions. Such class action resolutions reflect broader legal trends in holding technology vendors accountable for operational failures in public infrastructure.

Impacted residents may soon be eligible to submit claims for compensation if the court grants approval for the settlement. Community groups are expected to play a key role in notifying those who may have been wrongfully arrested or delayed during the software transition period.

The takeaway

This case highlights the significant real-world consequences that software implementation errors can have on the legal system and individual civil liberties. Residents should monitor for official court notices to determine if they qualify for the proposed financial compensation.