GW and former Mount Vernon College professors are finalizing a settlement agreement, University officials said Wednesday. Information about the settlement, which was reached out of court March 31, was originally set for release Monday.

Director of Media Relations Gretchen King said the parties reached a settlement “in principle” two days before the case’s court date April 2.

“Currently, both sides are working out the final details,” she said.

The professors allege the University violated their contracts and acted in “bad faith” when GW took over the college in 1999. GW had aided the small women’s college by paying off a $6.5 million loan from Georgetown University and entering an affiliation agreement with the college in 1996. GW took over after Mount Vernon College failed financially.

Both parties declined to release details about the settlement until the agreement is finalized. Attorneys in the case did not provide a target date for the release of an agreement.

University President Stephen Joel Trachtenberg said before the settlement negotiation that GW is not responsible for the contracts and should not be involved in the litigation. He said the University moved to settle to avoid court costs.

“It’s a business decision,” Trachtenberg said. “You ask yourself what is it worth to make this go away?”

-Kate Stepan