For more than three decades, the VA relied on an internal tracking system called VACOLS to manage legacy disability appeals. VACOLS ran a monthly automated process: if its records did not reflect a timely-filed Substantive Appeal for a given case, the system closed the appeal on the spot.
But VACOLS was only as reliable as the data fed into it. The VA’s own records show that incoming documents sat in a processing queue for an average of 43 days before being logged. During that gap, VACOLS treated a filed-but-unlogged Form 9 as if it didn’t exist — and closed the appeal automatically.
Veterans received no notification that their appeals had been shut down. Most continued to believe their cases were pending Board review, unaware that the VA had already closed the file years earlier.
1 in 6 automated closures were confirmed incorrect by the VA’s own Inspector General.
What the settlement requires — the VA must now do three things:
- 28,258 — Mandatory audit. Files the VA must manually review and reactivate where a timely Form 9 exists.
- 64,599 — Individualized notice. Additional veterans who will receive mail asking if they want their case reviewed.
- 1 year — Self-identification window. Time veterans not in either VA group have to come forward after court approval.