Just months into the pandemic, Matthew Haines, like landlords across the country, learned he was barred from evicting tenants who didn’t pay their rent under a federal eviction moratorium that lasted almost a year – costing him and his investors over $1 million.

Now, the Texan is hoping to get some relief.

Mr. Haines is among more than 1,500 property owners who filed a federal lawsuit arguing the moratorium enacted by the Centers for Disease Control and Prevention violated the Fifth Amendment by unlawfully denying them compensation. Plaintiffs range from those who lost thousands of dollars to one who lost over $14.5 million.

After initially losing in the Court of Federal Claims in 2022, the plaintiffs won on appeal and are now in settlement discussions with the Justice Department.…