Jeffrey Krug vs. Bloomsburg University et al

Case Background

On August 22, 2018, Plaintiff Jeffrey Krug filed a Retaliation lawsuit in the United States District Court, Middle District Pennsylvania (Case number: 4:18cv1669). Judge Jennifer P. Wilson presided over the case.

Cause

Dr. Jeffrey Krug joined Bloomsburg University as Dean of the College of Business on June 1, 2015. He quickly established himself as an innovative leader and accomplished fundraiser. In February 2016, Krug secured what became the largest single donor gift in the university’s history. He followed this success in August 2016 by obtaining the largest donation in Pennsylvania State System of Higher Education (PASSHE) history from Terry and JoAnn Zeigler, leading to the naming of the Zeigler College of Business.

During his tenure as Dean, Krug launched several successful initiatives. He established new MBA and certificate programs in downtown Philadelphia, rebranded the main campus MBA program, and secured an exclusive agreement with the Pennsylvania National Guard. Krug also created a financial literacy initiative for K-12 students and established the Global Business Institute and Entrepreneurship Leadership Center. He introduced new academic programs in supply chain management, international business, personal financial planning, and professional sales. Based on his outstanding performance, University President David Soltz granted Krug tenure on September 14, 2016, and reappointed him as Dean for the 2017-2018 academic year.

The problems began when Jane Doe No. 1, President Hanna’s administrative assistant, confided in Jane Doe No. 2 about the sexual harassment she experienced from President Hanna. After Krug helped Jane Doe No. 1 file a Title IX complaint, the university initiated a campaign of retaliation. Officials tampered with Krug’s office and computer, spread false rumors about inappropriate relationships, and created obstacles in his work through travel restrictions and delayed reimbursements.

Injuries

Jeffrey Krug experienced significant professional, financial, and emotional harm due to systematic retaliation from Bloomsburg University officials. As Dean of the Zeigler College of Business, Krug’s reputation suffered when administrators spread false rumors and misinformation, undermining his relationships with donors, faculty, and staff. This led to a loss of professional standing and compromised years of successful fundraising and program development efforts.

Financially, the administration delayed reimbursements and restricted travel, causing Krug direct financial hardship and impeding essential job functions such as fundraising and stakeholder engagement. Privacy violations further escalated the harm, as unauthorized personnel accessed his office and computer, exposing sensitive information and creating security concerns.

The hostile environment cultivated by the administration inflicted severe emotional distress. False rumors and heightened scrutiny caused Krug anxiety, while a retaliatory investigation intensified fears for his professional and personal future. He faced excessive monitoring, mandatory meetings, and policy enforcement aimed solely at him, creating an atmosphere of harassment and professional obstruction that compromised both his effectiveness and well-being.

Damages

As a result, the plaintiff suffered significant losses in earnings and employment benefits. He continued to face substantial economic losses. Additionally, the plaintiff experienced humiliation, emotional distress, and both mental and physical pain due to these wrongful actions. Moreover, the plaintiff incurred attorney fees and legal expenses related to his case.

Key Arguments and Proceedings

Legal representation

  • Plaintiff(s): Jeffrey Krug
    • Counsel for Plaintiff: Barry H. Dyller| Patrick T. O’Connell
  • Defendant(s): Bloomsburg University | Pennsylvania State System of Higher Education | Bashar Hanna | James Krause
    • Counsel for Defendants: Christine C. Einerson| Jonathan M. Blake | Karen Mascio Romano | Keli M. Neary 

Claims

Krug’s Retaliation lawsuit alleged multiple violations of federal and state law, including:

  • Title IX violations through retaliatory actions
  • Civil rights violations under 42 U.S.C. § 1983
  • Employment discrimination under Title VII
  • Violations of the Pennsylvania Human Relations Act
  • Various common law claims

Defense

Bloomsburg University and its co-defendants denied most of Jeffrey Krug’s allegations which was asserted in Retaliation lawsuit. They acknowledged that Krug was a Pennsylvania resident and worked at Bloomsburg University but disputed his characterization of events. The defendants specifically denied that Krug alone secured the largest single donation to the university from Terry and JoAnn Zeigler, stating that the gift could not be attributed to any single staff member.

The defendants disputed the allegations against Dr. Bashar Hanna. They denied claims about Hanna’s past conduct at Kutztown University but admitted that Kutztown offered to pay out Hanna’s contract if he resigned. They acknowledged that Hanna became BU’s President on July 7, 2017.

Regarding the sexual harassment allegations, the defendants claimed that Jane Doe No. 1 felt pressured by Krug and Jane Doe No. 2 to make complaints against Hanna. They stated that the university conducted a thorough investigation of the allegations and found the claims to be mischaracterized. The defendants denied any financial improprieties by Hanna or negative attitudes toward donors.

The defendants rejected all claims of retaliation against Krug. They stated that the rejection of Krug’s travel requests began before any complaints were filed and occurred because he did not follow proper protocol. They denied purposefully delaying his expense reimbursements or improperly demanding his attendance at meetings. The defendants maintained that the subsequent investigation into Krug’s conduct was legitimate and not retaliatory, focusing on his disclosure of personnel matters and protected information.

Jury Verdict

On August 20, 2024, the jury awarded him $1,026,549 in back pay and $725,601 in front pay. They also determined that Dr. Krug experienced emotional pain, suffering, inconvenience, mental anguish, and loss of enjoyment of life, for which they awarded him $1,500,000 in compensatory damages. Additionally, the jury found that both Dr. Bashar Hanna and Dr. James Krause acted with malice or reckless indifference to Dr. Krug’s federally protected rights under §1983 or Title VII. As a result, they awarded punitive damages of $450,000 against Dr. Hanna and $200,000 against Dr. Krause. In total, the jury verdict amounted to $3,902,150 in damages Retaliation lawsuit.

Court Documents:

Available Upon Request