The Indiana State Teachers Association says no member dues will be used to fund a $14 million settlement over a lawsuit involving the sale of health plans. The organization did not admit any liability in the case and believes the settlement terms are “fair to the school employees involved.”

December 3, 2013

News Release

Indianapolis, Ind. – Despite the political rhetoric used by Secretary of State Connie Lawson in her news conference this morning, it's clear that the information is both inaccurate and contrary to the state's pleadings in this case and in the final settlement.

The state agreed in this settlement to expressly recognize that neither ISTA nor NEA admitted any liability in this case.

No members' dues were used to fund this settlement. To protect the interest of school employees, ISTA and NEA funded litigation to sue those actually responsible for the collapse of the ISTA Insurance Trust. That litigation generated settlements in excess of $14 million, which are the sole source of the funds being used to resolve the state and school districts' cases.

ISTA regrets that the Office of the Indiana Secretary of State has decided for political reasons to misrepresent the resolution of this case. ISTA is grateful that this litigation has been resolved on terms that are fair to the school employees involved.

ISTA and NEA have always done the right thing and stood by their members since the outset of this matter and are proud to continue to do so.

“It is important to note that, contrary to what the Secretary of State's press release might suggest, there never was any allegation in the lawsuit that any funds received from school districts had been used by ISTA or NEA for their own benefit,” said Teresa Meredith, ISTA president.

Source: Indiana State Teachers Association

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