City of Fernley to pay half of $10 million flood settlement

RENO -- The city of Fernley will pay half of a $10 million settlement to about 600 victims of a flood caused by the failure of a century-old irrigation canal in 2008 under a deal a federal judge approved Friday.

Lawyers for the flood victims say the U.S. government and local irrigation district still are on the hook for as much as $150 million in damages.

Fernley will pay $5 million, Lyon County $1.3 million and an insurance company $3.8 million in the settlement of the class-action lawsuit on behalf of the individual members of the board of directors of the Truckee Carson Irrigation District .