Settlement Terms Between Liberty University and Jerry Falwell Jr. Revealed
University to pay Falwell Jr. $15 million.
Liberty University has agreed to a $15-million settlement of a lawsuit with former president Jerry Falwell Jr., according to tax documents reviewed by USA Today.
Liberty University (video screenshot) / Insert of Jerry Falwell Jr. (Photo by Gage Skidmore / Creative Commons)
The documents reveal the university, located in Lynchburg, Virginia, will pay Falwell Jr. $5.5 million to settle litigation and $9.7 million for retirement.
Falwell Jr. will pay Liberty $440,000 to settle “disputed expenses” between him and the academic institution.
Falwell Jr. was “very pleased with the outcome of the settlement negotiations and with the final settlement,” according to USA Today. Liberty did not provide a statement to the outlet.
The university and Falwell Jr. reached an agreement last July, but did not release specifics. A press statement simply said the two parties had reached a mutual understanding about the retirement and severance Liberty will pay to Falwell.
“Both the University’s Board of Trustees and Jerry Falwell, Jr. sincerely regret the lengthy and painful litigation process, and each take responsibility for their part in the disputes,” the 2024 press statement said. “Falwell acknowledges and apologizes for the errors in judgement and mistakes made during his time of leadership. The Board of Trustees acknowledge and apologize for the errors and mistakes made on their part as well. The Trustees and Falwell are committed to move forward in a spirit of forgiveness and with the hope of reconciliation in a Christ honoring manner.”
It added, “Because they agree that further comment on the lawsuits and their resolution is neither necessary nor constructive, they plan to make no further statements on this matter.”
In March 2023, Falwell sued the university for $8.5 million in retirement benefits he claimed they owed him.
In July 2023, Falwell Jr. sued the university, accusing it of misappropriating “for itself” the name and image of Falwell Sr., the conservative Christian evangelist who co-founded the evangelical university in 1971.
The settlement agreement authorizes Liberty to use the name, image, and likeness of its founder, Jerry Falwell Sr.
In September 2023, Falwell Jr. amended his complaint against Liberty, claiming the university’s board overlooked sexual misconduct by former leaders, including an unnamed former president, only to turn on Falwell Jr. when his life fell apart. Falwell Jr. also alleged the board exploited a near-fatal lung condition he suffered and harassed him by not paying him retirement benefits.
Following allegations that he and his wife had a years-long sexual relationship with a business associate, Falwell Jr. resigned from his post as Liberty’s president in August 2020.
In the MinistryWatch database, Liberty University has a 2-star financial efficiency rating, a C transparency grade, and a donor confidence score of only 34 out of 100, meaning donors should withhold giving.
TO OUR READERS: The mission of MinistryWatch is to help Christian donors become more faithful stewards of the resources God has entrusted to them. Do you know of a story that will help us fulfill our mission, or do you want to give us feedback about this or any other story? If so, please email us: [email protected]
Access to MinistryWatch content is free. However, we hope you will support our work with your prayers and financial gifts. To make a donation, click here.
