USC and a 66-year-old former university respiratory care practitioner have settled the plaintiff’s age discrimination suit.

The attorneys for the university and plaintiff Dena Lerma informed Los Angeles Superior Court Judge William Fahey on Friday that the case was resolved, but no terms were divulged. In the wake of the accord, the judge dismissed the case “without prejudice,” meaning it can be revived.

In their previous court papers, USC attorneys contended that Lerma’s termination was justified.

“USC discharged plaintiff after a serious patient-care event in which, based on USC’s investigation and review of the medical records, plaintiff (was found to have allegedly) failed to follow core respiratory-care requirements designed to protect patient safety,” the USC attorneys wrote in their pleadings.

Lerma admitted she administered a breathing treatment without a physician’s order and she did not notify a doctor of the patient’s deteriorating respiratory status, according to the university lawyers’ court papers.

According to her lawsuit, Lerma was hired in August 2008 and for more than 16 years, she performed her job in an exemplary manner. But in 2020, USC hired a male respiratory therapy manager who became Lerma’s supervisor and her work conditions changed as many employees age 40 and over were discharged or forced to resign, according to the suit. In addition, the new manager questioned why long-term workers like Lerma were still working, the suit alleged.

Lerma became the department’s oldest employee after a 70-year-old co-worker was allegedly forced to quit, the suit further stated.

Lerma objected to the new manager’s intention in mid-2022 to train NICU therapists because she believed he lacked the training, the suit further alleged. In response, the manager demoted Lerma and replaced her with a man in his 30s with less experience and seniority, according to the complaint filed in February 2025.

She went on medical leave for stress and anxiety in May 2023 and returned three months later to find that the manager had written a negative job performance review about her, causing her to not get a pay raise, the suit contended. Lerma’s complaints to management were ignored and the manager’s alleged mistreatment of her continued, she maintained.

Lerma was terminated in April 2024 after being falsely accused of violating university policy, the suit stated.

Her allegations included wrongful termination, retaliation and discrimination.

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