Contact: Claudia Keith, CSU, (562) 951-4813, ckeith@calstate.edu
or Shirley Armbruster, CSU Fresno, (559) 593-1815, shirleya@csufresno.edu



California State University Reaches Final Settlement Agreement
on Stacy Johnson-Klein Judgment

(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:

  • $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.   

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The California State University is the largest system of senior higher education in the country, with 23 campuses, approximately 450,000 students and 46,000 faculty and staff. Since the system was created in 1961, it has awarded nearly 2.5 million degrees, about 90,000 annually. Its mission is to provide high-quality, affordable education to meet the ever-changing needs of the people of California. With its commitment to excellence, diversity and innovation, the CSU is the university system that is working for California. See www.calstate.edu

Last Update: July 23, 2008
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