The university struck a deal with a former dean to end a long legal case with a multi-million dollar price tag. The settlement allows the university to begin rebuilding its reputation following a retaliation scandal.
Former Bloomsburg University Dean Dr. Jeffrey Krug, claimed that his firing was the university’s retaliation for helping a woman file a sexual harassment complaint against Hanna. Krug sued Hanna, Bloomsburg University, Dr. James Krause and the Pennsylvania State System of Higher Education for wrongful termination in 2018.
$3.9 million award had previously been granted to Krug with defendants immediately filing appeals. These appeals threatened to add millions of dollars to the award amount, as a daily post-judgment interest of $480.72 was filed beginning Aug. 22, 2024.
Krug’s attorney, Pat O’Connell, says this settlement is long overdue justice for his client.
“After 7 long years, Dr. Krug’s ordeal has finally come to an end. Fittingly, Dr. Hanna’s departure is a new beginning for Commonwealth University,” said O’Connell.
The union, who has been closely following the case, are feeling hopeful for the future of CU.
“Given everything that has transpired, we are focused on working with all interested stakeholders to make Commonwealth the best university possible…” said Dr. Kenneth Mash, President of Association of Pennsylvania State College & University Faculties.
The university is also looking to the future.
“We are pleased that a settlement has been reached in this matter, allowing all parties to move forward without the need for further appeal. Our focus is on the future as our faculty and staff prepare to welcome the Class of 2029 to our campuses this fall,” said Julie Stellfox, on behalf of CU.
To begin this new chapter, Interim President Dr. Jeffery Osgood will be stepping in until the president position is filled. Osgood is the Executive Vice President and Interim Provost of West Chester University.
Hanna will begin working for PASSHE as Vice Chancellor for Strategic Initiatives Aug. 1. While many view this change as a career boost for Hanna, the former president was making $425,080 as the president of a three-campus university. Now, he will be making $150,000, according to Press Enterprise. This career “leap” cost him $275,080.
