The Philadelphia Housing Authority on Friday agreed to pay $625,000 to settle a lawsuit with former executive director Carl Greene, marking the end of a protracted legal battle that stretched on for more than two years and cost the embattled agency $1 million in legal defense.
"PHA was able to negotiate a settlement in which it will pay $625,000 – a fraction of the $4 million that was being sought," the agency said in a statement on Friday. The settlement also ensures that Greene will be unable to pursue any further legal action against the Housing Authority or its board.
Greene was on Sept. 23, 2010 ousted as PHA executive director by the agency's Board of Commissioners after members found he had settled a number of sexual harassment complaints without notifying them. He filed suit in federal court against both the agency and board, claiming that his termination came without due process, violating his contract.
The case went to trial on Jan. 29 but broke earlier this month for settlement talks. Both sides came to an agreement around 5 p.m. Friday. "This settlement closes a tenuous chapter in PHA’s history," the agency said. "Now, we are looking forward, focusing all our energy and funding on serving the residents of PHA."
A judge is expected to approve the out-of court settlement tomorrow. The agreement does not protect Greene from further investigation into any possible criminal activities – including fraud – carried out during his tenure as PHA director, and the federal government is reportedly continuing to investigate his conduct.
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