Niki, reporting for the Fort Wayne Journal Gazette, reports that the teachers unions and 27 school corporations (or at least involving 27 school corporations – I’m not positive who all of the Plaintiffs are) have tentatively reached a $14 million settlement of a lawsuit alleging that the Indiana State Teachers Association and the National Education Association defrauded Indiana teachers.
[The Secretary of State's office] filed the complaint in 2009, saying the state’s largest teachers union violated the Indiana Securities Act when it offered a health care plan for school districts.
A news release said ISTA offered teachers and other school employees a medical plan that allowed school corporations to invest their excess balances to offset future health care costs. In the complaint, the office alleged that ISTA didn’t invest the money but instead used the money to cover significant shortfalls in its long-term disability plan. ISTA continuously issued quarterly and annual statements to schools misrepresenting fund balances.
The settlement apparently represents about 50 cents on the dollar.