Local News
3:20 pm
Tue August 13, 2013

State of Indiana, Teachers Unions Reach Tentative Settlement of Health Plan Suit

State officials say the Indiana State Teachers Association and its parent organization have agreed to a tentative $14 million settlement over the union's defunct health insurance program.

Indiana Secretary of State Connie Lawson announced Tuesday that the deal with the ISTA and the National Education Association would end the state's federal lawsuit against the groups.

State officials sued the teachers unions in 2009, alleging they violated Indiana law by offering a health care plan for school districts that was actually unregistered securities that Lawson compared to a Ponzi scheme.

Plans were sold to 27 school districts.

The $14 million settlement would go to those districts. If any of them don't sign onto the settlement, Indiana's lawsuit will proceed to trial in October.

In a statement, Lawson called the settlement "the right result for teachers and schools."