Liberty University Scandal Persists: $15 Million Falwell Settlement and Resurfaced Harassment Claims
Feb. 25, 2026 — Lynchburg, Va. Liberty University paid former president Jerry Falwell Jr. a total of approximately $15 million in a settlement resolving litigation tied to the Liberty University scandal, which began with his 2020 resignation amid a sex scandal involving his wife Becki and business partner Giancarlo Granda, according to reports from USA Today and Christianity Today.
The payout includes nearly $10 million in prior severance and retirement pay plus an additional $5.5 million to settle claims, with Falwell repaying $440,000 for disputed expenses. The agreement ends years of lawsuits following Falwell’s departure.
“Both the University’s Board of Trustees and Jerry Falwell, Jr. sincerely regret the lengthy and painful litigation process, and each take responsibility for their part in the disputes,” a Liberty spokesperson stated in a 2024 release cited by USA Today.
Falwell said he was “very pleased with the outcome.”
Resurfaced Harassment Allegations
Adding to the Liberty University scandal, a September 2025 report detailed claims by former employee Rachel Beck of sexual harassment in 1997-1998 by then-President John Borek and Vice President Jay Spencer. Beck alleged grooming, stalking, and a cover-up, including no formal investigation and Spencer’s $100,000 severance and rehire years later.
“There was such an element of control . . . I had lost all power,” Beck told The Roys Report.
Liberty stated the 25-year-old matter was “fully addressed through an investigation, mediation, and a settlement.”
Clery Act Violations
In March 2024, the U.S. Department of Education fined Liberty a record $14 million—the largest under the Clery Act—for failing to report sexual assaults, gas leaks, and threats, fostering a “culture of fear.”
The Liberty University scandal traces back to Falwell Jr.’s tenure, with prior settlements like a July 2024 trademark agreement reported by The Washington Post.
Background
Founded as an evangelical institution, Liberty has faced repeated controversies, including the 2020 events leading to Falwell’s exit as covered by BBC. Recent X discussions remain limited, focusing on historical issues.
The university, under President Dondi E. Costin, remains on federal monitoring through 2026.
This reporting draws from provided sources amid the ongoing Liberty University scandal.
