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Message from
President John D. Welty to the Campus Community regarding the settlement
of the Stacy Johnson-Klein lawsuit:
On Tuesday, June 17, a settlement was
reached in the Stacy Johnson-Klein lawsuit. I am pleased that there has
been a resolution. The university will continue to move forward in
providing the best possible experiences for students, faculty and staff.
Below is information from the California State University regarding the
settlement.
(June 18, 2008) -- The California State University has announced a final
settlement agreement with former Fresno State basketball coach Stacy
Johnson-Klein that will allow the university to pay out the settlement
over a period of 23 years. The original award to Johnson-Klein in a
lawsuit against Fresno State alleging sexual harassment and gender
discrimination was reduced to $6.6 million in February 2008. The court
also awarded her approximately $70,000 in court costs and $2.5 million
in attorney fees, bringing the total judgment to over $9.1 million. CSU
previously elected to make extended payments under Government Code
section 984.
The agreement brings the three year case to an end for both parties.
Under the agreement, which includes payment of attorney fees, the CSU
will pay Johnson-Klein:
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$5.4 million cash lump sum;
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$12, 500 per month for 20 years,
deferred, to begin in three years, and
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A $100,000 annuity for each of her
six children, payable at $25,000 per year, when each child turns 18, for
purposes of funding their college education.
Although the actual amount
that will be paid to Johnson-Klein is valued at $9 million, the actual
cost to the CSU will be $7.3 million, since the annuities will be
purchased at a discount and payout is deferred over 23 years.
“We are grateful to conclude this case, and believe the resolution
allows the California State University maximum flexibility in paying out
such a large judgment over a longer period of time,” said CSU General
Counsel Christine Helwick.
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