LUBBOCK, TX (KCBD) – One of the many legal battles between the City of Lubbock and businessman Ted Parker is now over and the city gets a fairly substantial victory. The City Council approved an out-of-court settlement Thursday with AAG/Icon for $850,000.
Recently in a related case, the city settled with its liability insurance for $500,000 so the city has recovered some but not all of its legal costs which are $1.8 million or more just for one of the various Parker lawsuits.
Parker had controlling interest in AAG at the time that it was the city's health insurance administrator, 2004 through 2006. It later changed to Icon and Parker no longer has controlling interest.
The city sued Parker's company in 2007 accusing him of not allowing an audit, which he denies. City officials have claimed over the years that Parker owes the city money but figures have ranged from $200,000 to $12 million and the city has never given solid proof to back up any number.
Parker counter sued in Lubbock but he also sued four Lubbock officials in Dallas County Court. Only complicating matters the city counter-sued on behalf of its four officials. Thursday's settlement effectively ends the Dallas County case but the Lubbock litigation continues.
KCBD NewsChannel 11 continues efforts to reach Mayor Tom Martin or City Attorney Sam Medina for comment.