Aug 27 (Reuters) - Delta Air Lines ( DAL ) agreed to pay

$78.75 million to resolve a class action lawsuit over a 2020

fuel dump that doused tens of thousands of properties, including

homes and schools, in Los Angeles and Orange counties in

California.

A proposed preliminary settlement was filed this week in Los

Angeles federal court, and requires a judge's approval.

The case stemmed from a January 14, 2020 incident in which

Delta Flight 89 to Shanghai from Los Angeles, carrying 167

passengers and crew, lost thrust soon after takeoff.

Delta pilots jettisoned about 15,000 pounds (6,804 kg) of

jet fuel from the Boeing 777 before returning to Los Angeles

International Airport, to reduce the risks of an overweight

emergency landing. Several dozen people on the ground were

treated for minor injuries.

Property owners said the pilots unnecessarily dumped fuel at

a low altitude over densely-populated areas, instead of dumping

fuel over the Pacific Ocean or at a high altitude so it would

dissipate, or burning fuel by flying in a holding pattern. They

demanded that Delta clean up the mess.

Delta denied wrongdoing, and said it settled to avoid the

uncertainty, distraction and cost of litigation.

The Atlanta-based carrier also said Flight 89's pilots and

cabin crew "did exactly what federal regulations and their

FAA-approved training required them to do to respond to that

in-flight emergency and ensure the safety of the passengers,

crew, and people on the ground."

A Federal Aviation Administration investigation later

cleared the pilots of wrongdoing, Delta said.

The net settlement, after legal fees and costs, may total

$50.6 million, and be distributed to owners or residents of an

estimated 38,000 properties, court papers show.

Filippo Marchino, a lawyer for the plaintiffs, in a

statement said the settlement was fair and reasonable, and would

compensate "hard-working families who asked only for respect and

just treatment and rightly deserve this result."

The case is In re Delta Air Lines Inc ( DAL ), U.S. District Court,

Central District of California, No. 20-00786.