The Motel 6 chain has agreed in a proposal to pay up to $7.6 million to Latino guests who say the company's employees shared their private information with immigration officials.
A federal judge must still approve the settlement agreement filed last week in federal court in Arizona.
The agreement between Motel 6 and guests represented by the Los Angeles-based Mexican American Legal Defense and Education Fund springs from a class-action lawsuit filed in January.
Fund president and general counsel Thomas A. Saenz said Wednesday the agreement will launch a long process allowing potential class action members to have a say in the case.
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Under the proposal, Motel 6 could pay a total of up to $8.9 million, including reimbursement of legal fees and administrative costs.