The university’s lawsuit alleges Falwell was dishonest with the executive committee when negotiating an exceptionally generous severance package, when he knew a brewing sex scandal would likely force him out at some point. The lawsuit also claims Falwell breached his fiduciary duty as the university’s president and member of the board of trustees and engaged in a statutory conspiracy to hide an alleged plan to extort Falwell from the university.
Liberty is seeking more than $40 million in compensatory and punitive damages “plus any other damages provable at trial,” according to the…