The deal involving 81 students puts a legal end to the saga that began when teacher Mark Berndt was arrested in 2012 and accused of blindfolding students and feeding them his semen on cookies.
Plaintiff's lawyers had planned to present evidence suggesting the school district was aware of sexual misconduct by Berndt three decades ago but failed to act until a photo processor at a pharmacy contacted police about film Berndt dropped off that showed pictures of blindfolded children and being fed some substance.
Berndt was sentenced to 25 years in prison after pleading no contest to 23 counts of lewd conduct.
The settlement reached during jury selection is in addition to USD 30 million the district previously agreed to pay to settle 65 other cases involving Berndt.
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Lawyers in the current case said it's believed to be the largest sex-abuse case settlement involving a school district.
Several fourth-grade girls had complained in the early 1990s that Berndt was masturbating in class, but the allegations were dismissed and the girls were accused of lying.
Around that period, a teacher observing Berndt's class reported to a principal that he was wearing loose-fitting shorts that exposed his genitals. The principal later denied receiving such a report and called the teacher a liar.
The Sheriff's Department investigated Berndt in 1994 but no charges were filed for lack of evidence.