Montclair Will Pay $1.25M To Settle ‘Whistleblower’ Suit With CFO

MONTCLAIR, NJ — The Montclair Town Council unanimously approved a $1.25 million legal settlement with the township’s chief financial officer at their meeting on Monday.

Montclair CFO Padmaja Rao filed a lawsuit against the township and its former town manager Timothy Stafford in October 2022. Rao alleged that Stafford and other township administrators retaliated against her after she discovered that council members were getting state health plan benefits that they didn’t work enough hours to qualify for – and tried to blow the whistle.

As part of her lawsuit, Rao said she also tried to discuss her concerns about “time records fraud” in the Montclair Fire Department with Stafford, who allegedly responded with “loud screaming” and derogatory comments – an accusation that other female township employees have made in the recent past. See Related: Montclair Town Council Votes To Remove Stafford

Rao has accused the township of creating a hostile work environment and retaliating against her in the wake of her whistleblowing activities.

On Monday, the town council voted on a resolution to approve the settlement. William Hurlock, Robin Schlager, Lori Price Abrams, Roger Terry and David Cummings voted yes. Mayor Sean Spiller was absent, and councilman Bob Russo was not present for the vote.

Interim Township Attorney Paul Burr said there is no admission of wrongdoing under the settlement.

“The township is recognizing that it's in the best interest of the town to settle the matter for business purposes,” Burr said, responding to a comment from Price Abrams.

Hurlock – who read the resolution on behalf of the council (watch the video below) – said that $250,000 will be paid to Rao and $1 million will be paid to her attorneys.

Rao will continue to serve as the town’s CFO.

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