An Indiana school counselor who was fired after discussing the district’s policy regarding “gender identity” with a reporter was awarded a $195,000 payout as part of a lawsuit settlement.
Kathy McCord, who has been an educator for 37 years, was dismissed after the South Madison Community School Corporation unveiled the new policy in August 2021.
The policy said that counselors and other employees were required to use “names and pronouns for the student that do not correspond with his or her sex” upon request of that student, according to a Wednesday release from Alliance Defending Freedom.
The policy sometimes “required employees to hide the new names and pronouns from parents,” the legal advocacy group said.
🚨HUGE WIN: Indiana counselor Kathy McCord—FIRED for refusing to hide students’ gender identity from parents—just WON a $200K settlement.
The district is paying up. The policy is DEAD.
Parents—not the state—are in charge of their kids. 👏https://t.co/bcCVg0wdPA
— American Principles Project (@approject) April 16, 2026
McCord objected to the mandate because it violated her sincerely held religious beliefs.
She told her supervisors that she had issues with the policy, but was told that unless she complied, she would lose her job.
A reporter also approached McCord to inquire about the policy, and when she confirmed its accuracy for the report, the school fired her.
A joint stipulation to dismiss was filed on Monday with the U.S. District Court for the Southern District of Indiana.
The $195,000 settlement covers damages, attorneys’ fees, and other costs.
ANOTHER woke school settles lawsuit
Kathy McCord, an Indiana school counselor, received a nearly $200,000 settlement from South Madison Community School Corporation after the district FIRED for refusing to keep a student’s gender delusions secret from parents.
HUGE WIN!… pic.twitter.com/w1cfSDimcW
— Libs of TikTok (@libsoftiktok) April 15, 2026
Alliance Defending Freedom Senior Counsel Vincent Wagner celebrated the resolution of the multi-year legal battle.
“No American should be fired for expressing her beliefs, especially not an educator speaking in her personal capacity, on her own time, and out of concern for her students,” Wagner said.
“Kathy knows that kids do best when schools and parents work together. But South Madison left parents in the dark,” he continued.
“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.”
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