According to the university’s lawsuit, Falwell was dishonest with the executive committee when he negotiated an extraordinarily generous divorce package, when he knew that a brewing sex scandal would probably force him at some point. The lawsuit also alleges that Falwell breached his fiduciary duty as the university’s president and board of trustees and had a statutory conspiracy to conceal an alleged plan to expel Falwell from the university.
Liberty is suing for more than $ 40 million in damages and penalties, plus any other damages that could be proven during the trial.
The case was filed Thursday in a court in Lynchburg, Virginia.
Liberty University spokesman Scott Lamb declined to comment further on the current lawsuit.
CNN has sued Falwell and a lawyer representing him over other legal representatives but has not yet heard of it.
The controversies
According to Liberty University’s case, Falwell acted against the “spirit” of the university in several cases, and his alleged disgraceful actions ultimately harmed the school and its reputation. According to the lawsuit, the school is known for its openly conservative policies that require students to refrain from ‘immodest behavior’ and alcohol.
Falwell acknowledged their relationship in a statement at the time, saying, “Becki had an inappropriate personal relationship with this person, something I was not involved in.” He said he reconciled with his wife and asked for professional help. Falwell also said in his statement that Granda was trying to blackmail him and his wife, a charge that Granda denies.
The university’s lawsuit alleges that Falwell, instead of disclosing Granda’s alleged attempts at extortion to the university, ‘led to a plan to disguise the illegal conduct’.
‘Falwell Jr. wanted Liberty to pay him severance and retirement benefits if Granda disclosed the Granda allegations, and Falwell Jr. thus deliberately withholding information from Liberty that would change the nature of the negotiations of the 2019 service agreement, ‘the lawsuit said.
The allegations by Granda were the last controversy that caused a dramatic fall of grace for one of the country’s most prominent evangelists.
In a radio interview shortly thereafter, Falwell said the woman was his wife’s assistant and they were at a costume party. He said the incident was ‘just very enjoyable’, but added that he should never have posted the photo.
Lawsuit alleges Falwell wanted an ‘escape hatch’
Falwell, a staunch supporter of former President Donald Trump, wanted an “escape hatch” for any political and personal outbursts during the 2019 service agreement negotiations, according to the lawsuit.
“Falwell Jr. has asked the Executive Committee to provide him with a safety valve to protect him from such actions, as he raised his profile in 2016 by being the first major evangelical leader to personally endorse Donald Trump as president. Falwell “Jr. claimed that he wanted an escape hatch for political and personal outbursts,” the lawsuit reads.
His son significantly raised the school’s profile – and finances – as president.
CNN’s Daniel Burke contributed to this report.