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Indiana School District Settles Counselor’s Lawsuit Over Gender Identity Policy

The district says it settled to avoid more litigation without admitting wrongdoing.

Overview

  • The case ended in a federal court filing that documented a cash settlement, with outlets reporting the payout between $195,000 and $200,000.
  • Kathy McCord was fired in 2023 after speaking to a reporter about a 2021 Gender Support Plan that let staff use student‑requested names and pronouns without telling parents, according to her legal team.
  • Alliance Defending Freedom, which represented McCord, said the plan even directed some employees to keep those changes from parents.
  • A federal judge ruled in 2025 for the district on most of McCord’s claims, including her First Amendment argument, and the district says the settlement includes no finding of liability.
  • Indiana has since required schools to notify parents about requests to change names or pronouns, and the district says it rescinded the earlier directive as McCord and her lawyers cast the change as a key outcome.