ORU Settles Lawsuit

Mart Green, Billy Wilson, and the Oral Roberts University Board reached a settlement Wednesday with two former professors who sued last year, claiming they were forced out after uncovering financial and ethical wrongdoing by the school's former president and family.

The confidential settlement with Tim and Paulita Brooker came at the end of a court-ordered mediation session and helps bring to a close the scandal that engulfed the evangelical school, founded in the 1960's by televangelist Oral Roberts, and led to the resignation of his son, Richard, as president.

The Brookers also had named the Robertses, former school regents and officials in the October 2007 wrongful termination lawsuit.

In January, the school settled out of court with professor John Swails, who brought the lawsuit along with the Brookers. That confidential agreement resulted in Swails' reinstatement at ORU.

In a statement read by his attorney, Richard Roberts said: "The university decided to settle the lawsuit with the Brookers, and I support the university. I cannot comment any further at this time."

Gary Richardson, an attorney for the Brookers, said, "I'm happy to see the Brookers be able to put this behind them so they can go on with their lives, and of course I'm happy to see it as well for the university."

The school's $50 million-plus debt has since been whittled to nearly $17.3 million, thanks to a $70 million donation from billionaire Oklahoma City businessman Mart Green who now serves as Chairman of the Board along with Billy Wilson.

Richard Roberts Gets Severance

The former president of Oral Roberts University, who stepped down amid allegations he misspent school funds to live in luxury, is being offered a severance package but university officials won't divulge its terms.

Richard Roberts, the son of school founder Oral Roberts, resigned in November. He and his wife, Lindsay, were accused of spending money on shopping sprees, home improvements and a stable of horses for their daughters at a time when ORU was more than $50 million in debt. Both have repeatedly denied wrongdoing.

Billionaire Oklahoma City businessman Mart Green took the reins at ORU in January, donating $70 million and pledging to restore the public's trust in the small evangelical school. Billy Wilson was selected to serve with Green as Vice Chairman of the Board of Trustees.

On Wednesday, Green called the proposed severance agreement "fair, reasonable, and in the best interest of ORU." The package has yet to be finalized, and Green refused to comment further on the details.

Frank Hagedorn, Roberts' attorney, confirmed the negotiations.

"He was promised a severance and he should get his severance," said Hagedorn, who would not say whether his client was assured severance when he resigned last November.

Critics say any deal for Roberts sends the wrong signal.

Richard and Lindsay Roberts still face a lawsuit brought by two former professors who claim they were forced out after alleging financial and ethical wrongdoing on the part of Roberts and his family. They also are named in a lawsuit brought by Trent Huddleston, a former senior accountant at ORU, who is suing for wrongful termination.

Mart Green Attempts To Balance ORU Budget

Layoffs and other budget cuts are possible for debt-ridden Oral Roberts University, as the tiny evangelical school looks to regroup from several financial scandals and keep enrollment from sliding further, the school's trustees chairman said.

"We can't spend more than we bring in," said Mart Green, an Oklahoma City businessman who recently donated $70 million to the school. "Let's find out where we're fat, where we're thin and make this place strong, and not just going hand to mouth year after year."

Green's comments on Friday came days after a tense faculty meeting where administrators braced professors for the possibility of job cuts as a way to make budget ends meet. Professors were also implored to persuade students thinking about transferring to return to the school in the fall.

"The message in the faculty meeting was, 'Hey, we're not on easy street just because we've got $70 million,'" said ORU interim president Ralph Fagin.

In an interview with The Associated Press, neither Green nor Fagin offered specifics on how many positions or programs might get the ax, but said the school is exploring all options as it reviews each department, a process that could take several years.

Already struggling to keep enrollment numbers up, ORU was rocked by a financial scandal last fall that led to the resignation of Richard Roberts, who had been school president since 1993. He left amid accusations of misspending school funds to bankroll a lavish lifestyle at a time when the school was more than $50 million in debt. He has denied wrongdoing. In the past eight years, the school has lost 500 students, and projected enrollment for the fall 2008 semester could be 150 students fewer than the 3,166 who attended last fall, Fagin said.

Even with Green's donation, the school is $25 million in debt and has deferred maintenance costs between $50 million and $60 million. Green, founder of Mardel, a Christian bookstore and office supply chain, declined to comment on the status of several lawsuits the school still faces in the wake of the scandal from former professors, students and a former accountant.

The two professors, Tim and Paulita Brooker, whose Oct. 2 lawsuit claims they were forced out after alleging financial and ethical wrongdoing on the part of Richard Roberts and his family, have asked the school for $2.5 million to settle. Attorneys for the professors and the school declined to comment this week on any potential negotiations, citing a judge's gag order. "We're doing the best we can to go through the legal process," Green said. "Let the legal process take its course."