Education

Wake schools paid $1.3 million in special-ed settlements. Why complaints are up.

The Wake County school system has paid at least $1.3 million in legal settlements in special-education cases through the first 10 months of October 2025.
The Wake County school system has paid at least $1.3 million in legal settlements in special-education cases through the first 10 months of October 2025. Getty Images/Wavebreak Media
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Key Takeaways

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  • Wake schools paid $1.3M in special-education settlements through 2025.
  • Families secured services and fees via 12 settlements citing inadequate support.
  • District cites high-needs influx, pandemic disruptions and staffing shortages.

The Wake County school system has paid out at least $1.3 million in legal settlements in special-education cases so far this year, reaching agreements with families who say their children aren’t getting an appropriate education.

The 12 special-education settlements announced at Wake County school board meetings since January range from $15,264 to $322,000. While details are limited due to federal student privacy laws, Wake is paying those families for services such as private school tuition, therapy and reimbursement of attorney’s fees.

“When disagreements arise about a student’s special education needs, our guiding principle is always to do what’s best for the student and to resolve issues in a way that supports their learning and growth,” the Wake County school system said in a statement Monday to The News & Observer. “Many cases that lead to settlements involve students with highly complex needs.

“These resolutions often include specialized services or private therapeutic or residential placements, which can be very costly. Our goal is to ensure students receive the services they need as quickly as possible.”

Some attorneys who represent special-education families say the legal battles represent hard-fought victories by parents.

“Often times it’s the last resort,” special-education attorney Keith Howard said in an interview. “The parent has tried to get services for the kids. It’s rare to have a parent who just wants to file a lawsuit.”

Special education complaints rising

Under federal law, public schools are required to provided students with disabilities access to a free and appropriate public education. What’s appropriate is often a matter of contention between schools and parents.

Wake, like other school districts across North Carolina has seen an increase in special education complaints since the pandemic. A major reason, according to the district, is Wake’s proximity to “world-class medical institutions” such as Duke University Health System and UNC Hospitals that attract “families of children with significant and complex disabilities.”

“We are proud these families choose our schools and take seriously our responsibility to serve them,” the district said in its statement. “However, a larger population of high-needs students naturally increases the likelihood of complex cases.”

Wake also cites how the pandemic disrupted learning and exacerbated special-education shortages. Vacancy rates in Wake, statewide and nationally are higher for special-education than other teaching positions.

“Recruiting and training new special educators remains a top priority,” Wake said. “We regret any instances where a student’s needs were not fully met and are actively implementing improvements, including expanding training and reorganizing service delivery, to better support families and prevent disputes.”

Wake has more resources than smaller North Carolina districts, said Howard, the attorney. But Howard said Wake’s size as the state’s largest school district means there are also plenty of issues, such as some students not being taught by a certified special-education teacher.

“In Wake County, realistically, if parents knew their rights, there would be a lot more lawsuits,” Howard said.

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Burden of proof for special-needs families

Special-education attorney Stacey Gahagan says North Carolina makes it harder than other states for special-needs families to access a free and appropriate public education.

North Carolina typically places the burden on the families and not schools to show that services aren’t being met. The state also allows schools to put items in a student’s Individualized Education Program (IEP) that parents may not want.

“When children come to us with IEPs from other states, it can often be that they have more services in other states than what they have when they get here,” Gahagan said in an interview. “That can be shocking to those parents of like, ‘well, wait, what happened? Why did this change?’”

Under federal law, parents are supposed to be able to represent themselves in special-education cases. But North Carolina uses the Office of Administrative Hearings, where the rules in court cases are followed in special education hearings.

“So when parents aren't represented, there's a lot that comes at you,” Gahagan said. “If there's a motion to dismiss their case that's filed, or there’s a request for discovery, that can be pretty overwhelming for unrepresented parents.”

Working with attorneys

A 2016 study by Campbell University Law School professor Lisa Lukasik found that North Carolina parents were far less likely to get a favorable outcome in special-education litigation when they represented themselves. Lukasik said it’s difficult to expect a parent who is not a lawyer to represent themselves when they’re also juggling their own jobs and taking care of their children.

“The likelihood of success went up significantly when parents were able to secure an attorney, whether that was a private attorney, or whether it was a pro se attorney, through Legal Aid or some other place,” Lukasik said in an interview.

Gahagan and Howard said school systems are more likely to pay attention to parents if they have legal representation. The attorneys said they try to get the cases resolved before legal costs rise during litigation.

“The cost for providing compensatory services and providing training and those kinds of things is relatively small compared to the attorneys’ fees that would be generated in a long legal battle, and the hearing that lasts days and days,” Gahagan said. “It behooves both the parents and the school district to resolve the cases as early as possible.”

Wake says it also wants to resolve things quickly without the cost or delay of a lawsuit. But the district said some attorneys are bypassing educational due process and go straight to litigation.

“That pathway is often more financially rewarding for the firms involved, even though it may delay resolution for the student,” the district said.

Reaching settlements with families

A $322,000 settlement announced in September shows what parents of special-needs students could potentially get. The case was settled before litigation was filed. Wake says the family didn’t have a lawyer.

According to Wake, up to $300,000 will be paid for a private educational program through the 2026-2027 school year. Eligible services include educational services, music therapy services , occupational therapy services, speech/language therapy services, feeding therapy services, nursing services, physical therapy services and applied behavior analysis services.

Wake will also cover the cost of an instructional assistant to prepare educational materials and support the student while receiving academic instruction or related services.

The remaining $22,000 will cover transportation costs.

A $265.090 settlement announced in April was also reached before a lawsuit was filed. Wake agreed to pay:

  • Up to $225,090 in private school tuition and transportation costs through the 2026-27 school year.
  • Up to $25,000 in compensatory services
  • $15,000 in attorney fees.

Wake says it recognizes that a courtroom is often not in the best interest of the child.

“Unlike a typical civil lawsuit, in special education cases the family and school will continue working together for years after any legal case is resolved,” Wake said. “We want that relationship to remain as positive and productive as possible. Settlement allows all parties to move forward and refocus on the student’s success without the lasting strain a trial might cause.”

Gahagan and Howard said they tell their clients they should set realistic expectations in what they’re requesting.

“I would tell them to think about what their child needs and put their own feelings to the side, because a lot of times parents are so angry they want blood,” Howard said. “But will blood get your kid where you want your kid to be? That’s hard.”

Goal of reducing litigation

Wake says it wants to work together with parents, educators and — when necessary — attorneys to meet the needs of children with special needs.

“Our goal is for fewer families to feel litigation is their only option,” Wake said. “We aim to build and maintain trust so concerns can be addressed early and cooperatively. When disputes do occur, we will continue to approach each case with compassion, integrity, and a steadfast commitment to the student’s success.”

Lukasik, the Campbell Law School professor, said it’s a laudable goal on Wake’s part. She also directs Campbell’s Richardson Family Education Law Clinic, which provides free services to low-income families, including several special-needs clients in Wake County.

“No case that we’ve evaluated didn’t have merit,” Lukasik said. “The clients that seek attorneys are usually correct. When they think that something is not going right, there’s usually something that is not going right.”

This story was originally published November 4, 2025 at 5:00 AM.

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T. Keung Hui
The News & Observer
T. Keung Hui has covered K-12 education for the News & Observer since 1999, helping parents, students, school employees and the community understand the vital role education plays in North Carolina. His primary focus is Wake County, but he also covers statewide education issues.
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