A major legal settlement will provide significant relief for food stamp recipients who lost their benefits recently. The settlement stems from a 2012 federal class action lawsuit that alleges the state violated federal rules by stopping people's benefits before allowing them a chance to correct infractions.

Legal Aid brought the lawsuit, along with two other organizations. Lead attorney Kenneth Stephens said the state would now pay back an estimated 200,000 people for more than $80 million in lost benefits. The federal government covers the cost of the extra food stamps. Stephens said that people were often sanctioned for missing appointments that could have easily been rescheduled.

"You do not need to rely on a very harsh almost draconian rule that takes away food as a punishment before giving people a second chance," Stephens said.

Stephens said one of his clients lost benefits after missing an appointment with a social worker because he was working. The attorney said losing benefits often puts people in the position of having to choose between paying for food, rent or medical expenses. 

According to the settlement, New York state also halted a large portion of its sanctioning process for food stamp recipients in December. It's unclear when or if sanctions will be reinstated. 

The state confirmed the settlement but would not comment further.