EDA announces $460,000 settlement with anonymous financial scandal party

EDA Press Release

The EDA shares the frustration and anger of the citizens and taxpayers of Warren County and the Town of Front Royal concerning certain financial losses suffered by the EDA in recent years. The EDA seeks to recover those losses as best it can from a variety of sources.

The amount recovered-to-date includes a recent confidential mediated settlement in the amount of $460,000. It was essential to achieving the settlement that the party’s identity remains confidential. Virginia law expressly permits public bodies like the EDA to enter into confidential mediated settlements. In determining whether to agree to a confidential settlement in this instance, the EDA made the difficult determination to agree to such a settlement in order to bring what would have been an expensive and vigorously contested dispute with an unknowable outcome to a highly satisfactory and certain conclusion financially beneficial to the EDA.

The work to recover the losses incurred by the EDA in recent years continues. The EDA is encouraged by the significant recoveries received to date and is determined to see that substantial additional compensation is awarded.

EDA RESOLUTION-Mediated Settlement

Whereas, the Board has assessed with the assistance of its legal counsel certain claims and defenses it may have related to a disputed matter;

 Whereas, pursuant to Virginia Code Sections 2.2-3705.1(11) and 2.2-4119, et seq, certain disputes between the EDA and a confidential party have been mediated;

Whereas, the mediated dispute has resulted in a proposed confidential settlement agreement which the EDA Board has considered in a properly called closed meeting;

 Whereas, the EDA desires to enter into the confidential settlement with a confidential party providing for a settlement payment to the EDA in the amount of $460,000;

RESOLVED, the EDA Board authorizes its Chairman and Secretary to execute on behalf of the EDA the aforementioned proposed settlement agreement which settlement agreement shall remain confidential as the product of a mediated confidential settlement pursuant to State law.

(The EDA Board of Directors will have their regular November/December monthly board meeting via Zoom on Friday, February 26, 2021, at 8 a.m.)