• Graham wants $10 Million From District: In addition to suing former superintendent Ramon Cortines for sexual harassment, LAUSD employee Scot Graham also wants $10 million from the school district for outing him, defaming him and placing him in a false light. Graham and LAUSD were on the verge of a settlement which would have given him $200,000 and lifetime benefits, but the deal fell apart when the district, according to Graham, prematurely announced it and the identity of Graham. Daily News

• AIG Will Pay LAUSD $79 Million In Settlement: AIG had refused to pay out insurance claims on LAUSD-owned properties with costly environmental hazards. LA Unified bought the insurance in 1999, as it was beginning a $20 billion constructions spree. LA Times

More reads after the jump.

• Lawsuit, Bill Aim to Keep K-12 Education Free in California: The ACLU suit is hitting out against fees for things like sports, field trips and textbooks, even the the California constitution guarantees every kid a free education. Some of these fees are legal, some aren’t, but many districts don’t seem to care. A bill in Sacramento, AB 1575, would create a formal complaint process for the illegal fees. LA Times

• Plan to Split Carson High Into Three Schools Riles Parents, Teachers: Many in the community are worried that the split will segregate the high achievers from the low ones. There is also a “general wariness, a concern that the Los Angeles Unified School District is tinkering with a local institution from afar.” The 2,800 will stay on the same campus, but 1,000 kids will join one of two pilots: the Academy of Medical Arts or the Academies of Education and Empowerment. Long Beach Press-Telegram

• Some Schools Adopting Longer Years to Improve Learning:  Increasing time in school is one of the best ways to narrow the achievement gap between rich and poor students, education advocates say. NYT