CSU Reaches Final Settlement Agreement on Stacy Johnson-Klein Judgment
June 18, 2008
FRESNO, Calif. - 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:
$5.4 million cash lump sum; $12, 500 per month for 20 years, deferred, to begin in three years, and 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.