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University Enjoined from Investigating Trustee Until It Advances Expenses for Trustee’s Defense

University Enjoined from Investigating Trustee Until It Advances Expenses for Trustee’s Defense

University Enjoined from Investigating Trustee Until It Advances Expenses for Trustee’s Defense

Court enjoins Penn State from continuing investigation of trustee without advancing legal fees under indemnification bylaw
Penn State University has been prohibited from proceeding with an internal investigation of the conduct of a University trustee without advancing his legal expenses. A trial court in Pennsylvania has held that the trustee falls clearly within the protections required by the indemnification provisions of the University’s bylaws and has rejected the University’s defenses in part because they were “specious.” Anthony Lubrano, a trustee elected by alumni of the University, sued in September seeking an injunction until the University advanced his legal expenses incurred in connection with the investigation. The Court did not describe the nature of the investigation, which it said was “neither...

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