Siena Heights University, a century-old Catholic institution in Adrian, Michigan, has quietly settled a whistleblower lawsuit with its former CFO Debi Andrews. The settlement comes weeks after announcing it will permanently close following the 2025–2026 academic year.
The lawsuit, filed in April 2025 in federal court, alleged Andrews was terminated in retaliation for refusing to misrepresent budget details to the university’s board and for encouraging a colleague to file a sexual harassment complaint against university president Douglas Palmer. The settlement terms have not been made public, and neither party has commented on the outcome.
Andrews, who joined the university in February 2024, claimed she uncovered serious financial irregularities, including questionable budget proposals, misuse of fundraising dollars by athletic staff and instances of personal expenses being improperly classified as student-related. According to court documents, her opposition to Palmer’s proposed budget and internal concerns about transparency preceded her being placed on unpaid leave that summer.
The complaint also accused the school’s then-HR director Fran Johnson of spreading false allegations about Andrews that claimed she was having inappropriate relations with staff in campus facilities, which were later used as the basis for what Andrews described as a retaliatory internal investigation.
Siena Heights declined to comment to MLive on the specifics of the case but previously stated all personnel decisions were made following a “thorough and careful review” and that it remained committed to a respectful and accountable workplace culture.
The legal battle has unfolded in parallel with the university’s financial unraveling. In June, Siena Heights announced plans to shut down operations after the current academic year, citing enrollment declines, demographic shifts and rising costs. With roughly 1,700 undergraduates and fewer than 200 graduate students, the school will continue to operate through the 2025–2026 academic year while preparing for closure.
Founded in 1919 by the Adrian Dominican Sisters, Siena Heights has been deeply connected to the Catholic community in southeastern Michigan for over a hundred years. The Sisters, who remain its stewards, have evolved into major philanthropic and impact investment players, financing climate and social justice projects and leading shareholder advocacy campaigns supported by institutions like BlackRock.
This investing approach is not unique to the Sisters and is a part of a larger challenge the entire religious institution is currently grappling with. The college’s closure also places Siena Heights among at least 80 U.S. nonprofit colleges that have closed, merged or begun wind-downs since 2020.
To support students affected by the shutdown, Ashland University in Ohio has stepped in to offer credit transfer guarantees, financial aid counseling and academic advising as the schools work to formalize a partnership. The case highlights the increasing exposure CFOs face at struggling institutions, particularly in education, where financial transparency and governance breakdowns can become legal headaches.
