Seattle Schools Wins a Court Case

 Looking through the agenda for tonight's Board meeting, there are several interesting items.

But the most interesting? The district, along with school districts around the nation, won in their lawsuit against the vaping company, Juul. After lawyer fees, SPS will realize $1.3M.  

Juul Settlement. In December 2022, a global settlement was agreed to with some of the defendants, specifically Juul Labs, Inc., and five individuals who were the founders and controlling investors and directors of Juul. Under that settlement, a total of $1.7 billion would be paid to approximately 1,500 government entities (including the District); approximately 10,500 injured individuals; millions of consumers who comprised a nationwide class action; and approximately 40 Native American tribes. However, payment of those amounts was contingent on court approval of the terms of the settlement of the class action. That approval occurred in September 2023.

Under the Juul settlement the District will receive, upon Board approval, a net of approximately $1.3 million (after payment of litigation costs and 15 percent for attorney’s fees). Approximately $750,000 will be paid in December 2023; approximately $150,000 will be paid in January 2024; approximately $150,000 will be paid in January 2025; approximately $150,000 will be paid in January 2026; and approximately $150,000 will be paid in January 2027.

Under the terms of the settlement agreement, the settlement proceeds must be used for “compensatory restitution or remediation.” While these terms are not specifically defined in the settlement, the understanding is that they will be used to address the issues that led to the filing of the complaint – namely student health and addiction, including issues of student mental health that may lead to the abuse of addictive substances. The District will use the settlement funds as part of a multi-pronged approach for prevention, early intervention, and cessation of youth vaping.

Additionally, the district won another lawsuit against Altria (formerly Philip Morris).

Under this settlement, the District will receive a net of approximately $400,000, which we expect to be paid in June 2024.

The Altria settlement, like the Juul settlement, has the same restriction on the use of the proceeds as the Juul settlement.

 There are also only 7 (!) people speaking including one who wants to try to shame former director Leslie Harris after the fact about Harris asking President Brandon Hersey not to roll his eyes. You'd think people might have something else on their radar. Sigh. 

One annoyance (yet again) is that the Fiscal Stabilization Plan from Superintendent Brent Jones is on the Consent agenda and yet the wording states that there have been multiple updates. How can the Board just vote this in without acknowledging those updates into the record? 

The updates come from the Board's Resolution on the plan.

One change is to take out wording on "well-resourced schools" from the Board resolution and put in "project budget deficit of $105M..."

Another is changing wording around closures to include "community" and allow for "engaged in possible solutions and..."

The biggest one is that the Superintendent rather than "include" several possible solutions really needs to "consider and research" the possible solutions.