LOUISVILLE, Ky. (AP) – The University of Louisville and its foundation have sued the school’s former president and other officials in a lawsuit claiming they conspired to divert millions of dollars from the foundation’s endowment.
The suit was filed Wednesday in state court. It says former President James Ramsey and his chief of staff, Kathleen McDaniel Smith, colluded to pay excessive compensation to themselves and others.
It also claims they conspired to divert millions of dollars from the foundation’s endowment into speculative and unauthorized ventures.
Other defendants in the suit include the law firm Stites & Harbison, which served as the foundation’s legal counsel.
U of L Foundation chairman Earl Reed says the actions alleged in the suit caused “significant financial harm” to the university and foundation.
Ramsey was forced out as president in 2016.