Updated 2:00 p.m.: Barry Burgdorf, vice chancellor and general counsel at the University of Texas System, said the decision to settle the matter was based on “pure and simple economics.”

In fact, the amount of the settlement is less than O’Donnell would have been paid if he had remained a system employee until the end of August, as had been agreed to following an initial restructuring of his position.

Burgdorf said the cost of defending the system in court would have greatly exceeded the $70,000 paid out as part of the agreement. Though, had it gone ...

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