City of Boston reaches $1 million settlement in Felix Arroyo sexual harassment case – NBC Boston

The city of Boston has agreed to pay a former city employee $1 million after she said she was sexually harassed by the city’s former health chief, Felix Arroyo, and was retaliated against when she spoke to authorities about her concerns.

A city spokesperson confirmed in a statement to NBC10 Boston on Friday that “the city has reached a mutually acceptable settlement in this case, which dates back to 2017 under a previous administration.”

Through this agreement with Hilani Morales, the city avoids significant additional costs from further litigation, the spokesman added.

The settlement agreement states that the city will issue payment in two checks, the first to “Tocci & Lee, LLC” in the amount of $356,000 for attorneys’ fees and costs and the second to Morales in the amount of $644,000 for alleged damages for emotional distress.

Arroyo is suing the city to gain access to records related to years-old allegations of sexual assault.

Morales filed the lawsuit in March 2018, alleging three counts against the city and Arroyo, including a hostile work environment based on gender, quid pro quo sexual harassment and retaliation.

Morales had previously worked for Arroyo, and she alleged in her lawsuit that he manipulated her into having a sexual relationship with him in 2016 and harassed her at work. She further claimed that the city demoted her and transferred her to another department when she reported Arroyo.

After a four-week investigation into the allegations, Arroyo, who had previously stated that the allegations were baseless, was fired from his post as Secretary of Health and Human Services by then-Mayor Marty Walsh in August 2017.

He later filed a countersuit against Morales for defamation, which has not been resolved to this day and is not part of this agreement. The defamation trial is scheduled for next year.