INDIANAPOLIS (AP) - 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.
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 securities law by offering a health care plan for school districts
that was actually unregistered securities. Those plans were sold to 27
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.
Lawson calls the settlement “the right result for teachers and schools.”