$1 million settlement reached over chemical that was added to water in SC town
Residents of a small town that injected an unapproved water treatment compound into local drinking water are eligible for a payout from a class action lawsuit.
Parties reached a settlement agreement for damages related to the city of Denmark’s use of HaloSan, a compound not approved by the federal government to treat drinking water, in a town well. The insurance company for Berry Systems, Inc., which installed the HaloSan system, will pay $1 million under the settlement..
Denmark is a small city of about 3,000 residents who for years had complained about discolored water and inconsistent service. They later found out the town used a chemical unauthorized by the U.S. Environmental Protection Agency to treat a drinking water well. It’s not known how HaloSan may have affected resident’s health.
After attorney’s fees and other expenses, about $600,000 will be disbursed to those included in the lawsuit. While payments depend on an individual’s water bill, the final payout to individual residents and businesses may total up to hundreds of dollars, Bakari Sellers, an attorney representing local residents, said.
In addition to Berry Systems Inc., the state’s environmental agency and the city of Denmark are also named in the lawsuit, though they will not contribute funds to the settlement, according to the notice. Officials with both DES, Berry Systems Inc. and Denmark were unavailable for comment.
The lawsuit settlement does not address any personal injury damages associated with the use of HaloSan in the municipal water. Instead it’s intended to give people some money back for the water they bought while the town was using the chemical, A. Gibson Solomons, III, an attorney representing the plaintiffs, said.
Sellers, who grew up in Denmark, and Mario Pacella, lawyers with the Strom Law firm in Columbia, said they are pleased with the settlement.
“The city of Denmark has been through a lot with their water system,’’ Sellers, a commentator on CNN and former state representative, said. “They have through policy and funding attempted to upgrade that system. However, there was still damage done to individuals who have been paying. We are happy to get them some relief.’’
Although the city of Denmark and the state environmental department have liability for the use of the unapproved chemical, Sellers said it would have been difficult to get money from either government, particularly cash-strapped Denmark. The small community is in a rural area about an hour south of Columbia.
“We are happy the citizens of Denmark are not paying this settlement out,’’ Sellers said. “
The Department of Environmental Services, formerly known as the Department of Health and Environmental Control, approved the use of the HaloSan despite the fact that it lacked federal approval. The city of Denmark used the chemical to manage bacteria that create red, slimy deposits in the town well, though the chemical is most often used in pools and spas. The city injected a well with HaloSan for 10 years before federal regulators suspended use of the chemical in 2018, according to previous reporting by The State.
Residents of the town had complained for years about the poor quality of its drinking water and attracted the attention of national politicians, including Bernie Sanders, in their efforts.
The State’s Sammy Fretwell contributed reporting to this story
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This story was originally published April 13, 2025 at 5:00 AM with the headline "$1 million settlement reached over chemical that was added to water in SC town."
