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Activist Claims MSU Actions Led to Nonprofit's Collapse

Activist Brenda Tracy's amended lawsuit claims Michigan State University's actions after her harassment report against Mel Tucker caused her nonprofit to collapse.

Nathaniel Reed
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Nathaniel Reed

Nathaniel Reed is a senior education correspondent covering university governance, campus policy, and free speech issues in American higher education. He provides in-depth analysis of administrative decisions and their impact on academic life.

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Activist Claims MSU Actions Led to Nonprofit's Collapse

An amended federal lawsuit filed by activist Brenda Tracy alleges that Michigan State University's handling of her sexual harassment complaint against former football coach Mel Tucker led directly to the financial collapse and dissolution of her nonprofit organization. Tracy's lawyers argue that the university failed to protect her privacy, causing a halt in donations that crippled her sexual assault awareness foundation.

Key Takeaways

  • Brenda Tracy's lawsuit claims her nonprofit folded after MSU allegedly leaked her identity as the complainant against Mel Tucker.
  • The amended filing asserts the university used its authority to damage her reputation and business, causing donations to cease.
  • The lawsuit raises concerns about potential donor influence, noting Tucker's attorney also served as general counsel for a company owned by a prominent MSU donor.
  • Michigan State University is seeking to have the lawsuit dismissed, arguing it is not responsible for the alleged damages.

Lawsuit Details Financial Ruin

The core of the updated legal filing centers on the severe financial consequences Brenda Tracy says she suffered after coming forward. According to her attorneys, her nonprofit, which was dedicated to sexual assault awareness, has since been forced to dissolve.

The lawsuit contends that once her identity became public, a direct result of the university's alleged failure to maintain confidentiality, the organization's funding dried up. The filing states that donations stopped, effectively shuttering the nonprofit and derailing her associated speaking career.

Background of the Harassment Complaint

In 2022, Brenda Tracy filed a formal complaint accusing then-MSU football coach Mel Tucker of sexual harassment. An internal investigation conducted by the university concluded in October 2023, finding Tucker responsible for violating the university's sexual harassment policies. Tucker was subsequently fired by the university.

Tracy is now seeking unspecified damages for what her legal team describes as a targeted effort by the university to undermine her credibility. The lawsuit claims MSU's actions were not just negligent but actively harmful to her professional life and advocacy work.

MSU Seeks Dismissal of Claims

Michigan State University has taken a firm stance against the lawsuit. Attorneys for the MSU Board of Trustees filed a motion earlier this month requesting that judges dismiss Tracy's original complaint. The university's legal team characterized her lawsuit as an attempt to secure a "multi-million-dollar windfall" from Tucker's termination.

In their court filings, MSU's lawyers argued that the Board of Trustees is not the body responsible for enforcing the university's specific misconduct policies, shifting accountability away from the institution's leadership. An MSU spokesperson declined to comment on the latest amended lawsuit, citing the ongoing litigation.

In response, Tracy's lawyers stated the university "weaponized litigation filings, media communications, and institutional authority to stigmatize her, destroy her nonprofit and speaking business, and silence her."

This legal back-and-forth highlights the conflicting narratives at the heart of the case: Tracy's claim of institutional retaliation versus MSU's assertion of non-liability.

Allegations of Donor Influence Surface

A significant new element in the amended lawsuit involves prominent MSU donor and billionaire Mat Ishbia. The filing faults MSU for not disclosing a potential conflict of interest regarding Mel Tucker's legal representation.

Specifically, the lawsuit points out that Tucker's attorney also served as the general counsel for United Wholesale Mortgage, a lending company owned by Ishbia. Mat Ishbia, who played basketball for MSU from 1998 to 2002, is one of the university's most significant financial contributors.

Conflict of Interest Concerns

Tracy's legal team argues that allowing Tucker to be represented by a lawyer with direct professional ties to a major university donor creates, at a minimum, "the appearance of donor-driven influence and institutional bias." This raises questions about whether the university's handling of the case could have been influenced by its relationship with a key benefactor.

This allegation introduces a new layer of complexity to the case, suggesting that powerful external relationships may have played a role in the university's internal processes. According to the original report, Ishbia's company did not immediately respond to a request for comment on the matter.

The Broader Implications for Universities

The case between Brenda Tracy and Michigan State University touches on several critical issues facing higher education institutions today. The primary concern is how universities handle high-profile misconduct complaints, especially when they involve prominent figures like a head football coach.

The lawsuit scrutinizes the duty of a university to protect the privacy and professional well-being of a complainant. Tracy's claim that the alleged privacy breach led to the destruction of her livelihood could set a precedent for how such cases are managed in the future. If her claims are substantiated in court, it could force universities to re-evaluate and strengthen their confidentiality protocols.

Furthermore, the introduction of the donor-influence angle speaks to a long-standing debate about the power of major financial contributors in university governance and decision-making. The outcome of this case may influence policies regarding transparency and conflicts of interest when university employees are involved in legal disputes.