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Former school counselor receives $195,000 settlement in gender identity policy lawsuit

The district said it settled to avoid further litigation and to remain focused on students, while denying any wrongdoing.

  • On Wednesday, the South Madison Community School Corporation agreed to pay $195,000 to settle a federal lawsuit filed by former counselor Kathy McCord, with the agreement finalized April 14 after three years of litigation.
  • The district fired McCord in January 2023 after she spoke to the Daily Signal about a 'Gender Support Plan' requiring staff to use student-requested names and pronouns without parental notification or consent.
  • McCord stated, "No public-school employee should be fired for expressing her personal beliefs," while South Madison claimed it settled to avoid litigation costs, asserting the court made no findings of liability against the district.
  • Indiana law now requires schools to notify parents of name or pronoun change requests, prompting South Madison to rescind its directive—a shift McCord said was essential for parental involvement in child welfare decisions.
  • Similar disputes nationwide, including $650,000 in Brownsburg and $360,000 in California settlements, reveal significant financial risks for districts maintaining policies excluding parents from student identity discussions.
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Fox News broke the news in New York, United States on Wednesday, April 15, 2026.
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