University of Louisville officials still undecided on lawsuit ov - WDRB 41 Louisville News

University of Louisville officials still undecided on lawsuit over foundation mismanagement

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University of Louisville board of trustees chairman J. David Grissom, left, and interim president Greg Postel address the media on Monday, Oct. 2, 2017. University of Louisville board of trustees chairman J. David Grissom, left, and interim president Greg Postel address the media on Monday, Oct. 2, 2017.

LOUISVILLE, Ky. (WDRB) --  The University of Louisville board of trustees is still waffling on whether to sue former U of L President James Ramsey and his former aides six months following the release of a $2 million forensic investigation that detailed mismanagement and over-spending at the university’s nonprofit foundation.

The trustees on Thursday finalized an agreement with the foundation that “does everything known to man to close the door to bad behavior at the foundation going forward,” trustees chairman David Grissom said.

But Grissom said university lawyers are still gathering facts “involving various parties” and it’s too soon to determine whether litigation is warranted.

“We continue to look at causes of action against the officers and directors of the foundation,” he told reporters on Thursday.

Grissom could not predict when the board will decide.

“There are too many conflicting winds blowing, pro and con, but (the decision) will be made as expeditiously as it can be,” he said. “The litigation alternatives are continuing to be explored.”

The agreement signed Thursday says the foundation, a nonprofit organization that manages U of L’s nearly $800 million endowment, and the university will work together to purse any legal claims against “third parties” in which a monetary recovery is likely.

Any recovered funds will be placed in U of L’s endowment, which was depleted by more than $100 million through excessive spending and unrecognized losses on loans, according to the forensic investigation.

Reach reporter Chris Otts at 502-585-0822, cotts@wdrb.com, on Twitter or on Facebook. Copyright 2017 WDRB News. All rights reserved.

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