City of Colorado Springs settles wrongful termination lawsuit with former employee

COLORADO SPRINGS, Colo. - The City of Colorado Springs has agreed to pay $250,000 to settle a wrongful termination lawsuit brought by a former employee.

In August of 2011, Terry Velazquez said she was fired for exposing misuse of city funds and because of gender discrimination.

Velasquez said she found some city employees were being overpaid and that grant money from the El Pomar Foundation wasn't being used appropriately. City leaders weren't happy to hear her concerns, she claimed, saying they eventually fired her.

In April of 2012, the city released a statement saying they had conducted an investigation into Velasquez's allegations and found no merit to her claims.

Tuesday, the settlement between the two parties was approved by a federal court. The payment is to cover her back-pay, attorney's fees, termination and "related transition issues."

"The parties mutually agreed that a final settlement would be in the best interest of both parties, allowing them to move forward along separate paths. There was no admission of any wrongdoing or liability on the part of the City," the Colorado Springs said in a written statement.

Tuesday, the city also announced plans to settle some lawsuits linked to the 2009 termination of a contract with First Fleet/First Transit for $8,000,000.