A financial crisis caused by 2008′s Hurricane Ike left Galveston with nearly $1 billion in damages.  Citing this deficit, the University of Texas Medical Branch at Galveston was ordered to lay off 3,800 employees.  The final number laid off was closer to 2,400.

Due to the monumental cutbacks, notices of termination were sent to 127 faculty members, including 40 with tenure and the then-president of the faculty senate.  A 22-page report by the 45,000-member American Association of University Professors, founded in 1915 to protect academic freedom, accuses the UT system of using an unfair process to lay off their employees.  The American Association of University Professors claimed that UTMB failed to meet standards that ensure  professors are not fired based on internal politics or political viewpoints.  The report also said that the UT system governing faculty dismissals restrict faculty rights.

UT has admitted to shortcomings and has stated that a panel assigned to revise the ruling has made suggestions.

Filing for bankruptcy can be a very embarrassing and public affair.  If your business is in severe financial trouble, contact the Galveston Chapter 7 bankruptcy lawyers of Gipson, Norman & Root by calling 281-332-4800.