A school in Indiana has settled a lawsuit for nearly $200,000 after a counselor was fired for her outspoken stance regarding the school’s transgender policies, specifically the lack of parental notification.
“I am thrilled to see this case settled, but most of all I am grateful that Indiana law now requires the South Madison Community School Corporation to notify parents about a child’s request to change his or her name or pronouns,” Kathy McCord said in a statement to Fox News Digital.
McCord, a 37-year education veteran, filed the lawsuit in 2023 after she was fired for speaking to the media about the central Indiana district’s transgender support plan.
“Because of that, South Madison can no longer force other educators to lie and keep secrets about children from their own parents,” McCord declared. “When I spoke out on my own time in my personal capacity, I did so because I understood how important it is for parents to be involved in all matters of their child’s life — especially when their child is struggling.”
“I loved and cared for students for over 37 years,” she continued. “Despite decades of success as a teacher and school counselor, I was fired after simply expressing my beliefs on an important topic, which were different than the school district’s. No public-school employee should be fired for expressing her personal beliefs or be forced to lie to students or parents.”
The Alliance Defending Freedom represented McCord and issued a news release about the settlement.
“In August 2021, the school district adopted a policy that required counselors and other employees to use names and pronouns for students that do not correspond with their sex, without requiring parental notification or consent,” the release recounted. “In some cases, it even required employees to hide these new names and pronouns from parents.”
Indiana school district to pay nearly $200K after firing counselor who spoke about gender identity policy
INDIANAPOLIS – Alliance Defending Freedom attorneys representing a school counselor fired after speaking to a journalist about a school district’s gender identity policy… pic.twitter.com/gTa9EeYYk1
— Johnette Cruz (@thejohnettecruz) April 15, 2026
“McCord … objected to the directive, which required her to speak in ways that violate her sincerely held religious beliefs,” it continued.
“When a reporter asked McCord about South Madison’s directive, she confirmed the accuracy of information about it that he had already gathered from other sources. Soon after the reporter published his story, the school district fired McCord.”
As part of the settlement, the school district will pay $195,000 for damages, attorneys’ fees, and costs.
ADF Senior Counsel Vincent Wagner said, “Kathy knows that kids do best when schools and parents work together. But South Madison left parents in the dark. It’s regrettable that South Madison made Kathy endure three years of litigation to get to this point, but we are pleased with this result for Kathy.”
Shortly after ADF attorneys filed McCord’s lawsuit, a new Indiana law took effect requiring South Madison to retract its directive that lacked parental notification.
Back when McCord worked there, however, the school required counselors to use a form called a “Gender Support Plan.” South Madison did not require parental consent, or even notification, to change a student’s name and pronouns.
ADF also said the school didn’t bother to consult the local community, failed to inform parents of the policy during school board meetings, and didn’t even post about the matter on its official website.
Wagner told Fox News Digital that he hopes the settlement, which was finalized on March 25, will encourage others to step forward in defense of their God-given constitutional rights.
“Our client, Kathy McCord, was fired after expressing her personal beliefs — speaking on her own time in her personal capacity out of concern for her students — based on her unwillingness to lie to parents,” he said.
“Kathy knows what should be obvious to everyone: When a student struggles with gender, sexuality, or any other important issue, parents should be included so they can make the best decision for their child. Schools should actively partner with parents, not cut them out,” Wagner added. “Lying to and hiding information from parents violates their constitutional rights. And it can send struggling children down a one-way path to irreversible harm.”
In a statement to Fox News, the South Madison Community School Corporation said that SMCSC “has concluded the lawsuit filed by former employee Kathy McCord. In August 2025, the Court ruled in favor of SMCSC on the majority of Ms. McCord’s claims, including a finding that the District did not violate her First Amendment rights.”
SMCSC added that, “While the District feels confident it would have prevailed on the only remaining claims if they had proceeded to trial, the parties have now reached a settlement. SMCSC chose to settle to avoid the significant time, expense, and disruption of continued litigation and to allow the District to remain focused on serving students. SMCSC has not admitted any wrongdoing and the Court made no findings of liability against the District.”
Wagner concluded, “We are excited to settle this case and hope this settlement encourages public schools around the country to put an end to unconstitutional policies that violate educators’ and parents’ rights,”
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