A former Fayette County Public Schools grants accounting manager has filed a lawsuit against the school board and Superintendent Demetrus Liggins, claiming she was retaliated against after repeatedly reporting suspected financial misconduct within the district.
Background
Mira Beth Muth, who served as District Wide Manager Grants Accounting for the Fayette County Public School District during the 2023-2024, 2024-2025, and 2025-2026 school years, filed the verified complaint on July 13 in Fayette Circuit Court. The lawsuit names the Fayette County Public School Board and Liggins in his official capacity as defendants.
According to the lawsuit, Muth consistently reported to her supervisor, Rodney Jackson, that the district was non-compliant in effectively distributing and/or refunding funds in its grants. She also informed him that the district was allegedly moving funds between Fund 1 — which covers tax payments and SEEK funding from the state — into Fund 2, which covers all grant-related funds and donations.
Alleged Retaliation
The complaint states Jackson repeatedly told Muth she was going “too deep” into the grants, allegedly instructed her not to answer emails without his explicit permission, and allegedly told her not to ask any questions to the Kentucky Department of Education without prior approval.
In January 2025, the lawsuit states, Jackson told Muth there was “a target on her back,” which the complaint characterizes as a threat due to her good-faith reporting of the district’s mismanagement of grants.
After her reassignment, Muth met with district officials to reportedly seek an explanation. The lawsuit states she received no clear answer. During those meetings, Muth raised concerns that financial information being presented to the board and the public was inaccurate and misleading because the grants had not been properly managed, according to the lawsuit.
Lawsuit Claims
The lawsuit alleges the defendants violated Kentucky’s whistleblower protection statute, which prohibits employers from retaliating against employees who in good faith report actual or suspected violations of law, mismanagement, waste, fraud, or abuse of authority.
Muth is seeking compensatory and punitive damages in amounts to be determined by a jury, injunctive relief reinstating her to her employment position with a renewed contract for the 2026-2027 school year, and an order preventing the defendants from further discriminating, harassing, or taking adverse action against her.
Original reporting: WTVQ (Lexington) — read the source article.
