Frequently Asked Questions
About the Alumnae Trustees/AAMC Lawsuit
AAMC and Mills College File with Alameda County Superior Court to Dismiss Lawsuits Without Prejudice
The AAMC and the College have agreed to a mutual dismissal of their respective lawsuits. The litigation will be concluded upon review and entry of the dismissal order by the assigned judge. Conversations about the future between the AAMC and the College will begin the week of January 17, 2022.
For many years, the AAMC has been dependent on the College for its infrastructure. As the merger proceeds, we are working towards a more independent infrastructure. This includes both staffing and technology. While the nature of our future working relationship with Mills College at Northeastern University remains to be seen, the AAMC Board of Governors is negotiating with Mills College to reaffirm our access to the Reinhardt Alumnae House and the database of alumnae originally created by the AAMC, which was later assumed by the College.
For more information on the chronology and conclusion of the AAMC’s lawsuit, as well as a presentation by members who had petitioned for the lawsuit’s end, we invite you to attend a Special Town Hall on Tuesday, February 8, at 5:30 PM via Zoom. Please register and submit any questions in advance to aamc@mills.edu with the subject line “Special Town Hall Question.” A synopsis and FAQ page will be created afterward and will be available on this website.
Alumnae Trustees/AAMC Lawsuit FAQs
October 2021
Since the Mills College Board of Trustees voted on September 14th to delegate authority to the College administration to negotiate and approve the merger with Northeastern University, the Alumnae Association of Mills College (AAMC) Board of Governors (BOG) has received a number of questions about the proposed merger, and the status of the lawsuit seeking truth and transparency about the College’s actual financial condition.
Given that the Trustees have already voted to allow the College staff to negotiate and finalize the merger, what is the status of the lawsuit?
The core goal of the AAMC lawsuit has always been to seek truth and transparency as to the College’s true financial condition and to validate the financial crisis truly necessitates a merger with or acquisition by any other college; ten days after the lawsuit was filed, we learned of the proposed merger with Northeastern University, yet the fundamental questions remain. Is there an actual financial crisis, or is it more of a cash flow issue? The ruling made in September ordered the College to provide the 2021 financials and lifted the temporary restraining order relating to the vote on the Northeastern merger; however, the court has not yet ruled on the merits of the lawsuit itself.
Why not withdraw the lawsuit?
As it stands today, there are two lawsuits on the table: The original lawsuit by the AAMC seeking truth and transparency from the College, and the counter lawsuit filed by the College which appears both frivolous and retaliatory in nature. If the AAMC were to withdraw the original lawsuit, there is no guarantee that the College would withdraw its counter lawsuit – leaving the AAMC at far greater risk.
If the College were to withdraw its countersuit, that might provide a path forward towards resolution, especially if certain open questions can be resolved, such as the future rights to the Reinhardt Alumnae House, alumnae access to campus, and what our role will be in future Board of Trustee negotiations. Until and unless the College withdraws its countersuit and answers the remaining questions, then the AAMC’s lawsuit remains necessary and important.
For those alumnae who hope for an end to the current litigation, we urge you to ask the College to end its lawsuit against the AAMC.
Given that the merger is moving forward, has the lawsuit really achieved anything?
Absolutely. It was only because of the lawsuit and a judge’s order that President and Alumna Trustee Viji Nakka-Cammauf was able to get some – although not all – of the information she had a right to see in order to assess the College’s financial health. It was only through our legal counsel that the AAMC, UC Mills, and Save Mills were provided with the opportunity to present their proposals at a listening session of the Board of Trustees.
To be clear, we wish it did not require filing a lawsuit for the Alumnae Trustees to get access to financial documents they already had a right to see. We wish it did not require legal counsel for the Board of Trustees to listen to alumnae and students who care about the future of the College. Unfortunately, we believe it was only because of the presence of our attorneys and the lawsuit that these things happened.
How much has the AAMC spent on legal fees?
As of August 31, the AAMC has spent more than $700K in legal and forensic accountant fees.
The lawsuit has cut the AAMC’s reserves by nearly half; how do you plan to continue covering legal and other fees associated with the lawsuit?
After President Hillman announced the closure of Mills College, the BOG launched the For Generations Still campaign, with the goal of raising $5 million to help retain Mills College as an independent undergraduate-focused degree-granting university. Some of these funds will help cover legal fees, as well as a number of anticipated AAMC infrastructure investments.
Why do we need to raise funds for AAMC infrastructure investments?
Since its inception, the AAMC has been highly dependent on Mills College for infrastructure support, including technology and staff. After the College withheld access to the alumnae database in July, it became clear that AAMC should invest in its own resources separate from the College to create a database of alumnae contacts and support other critical functions such as creating and managing additional endowed scholarships.
In particular, the work of the AAMC is currently performed by volunteers and two part-time staff.
To scale AAMC so it can function efficiently and effectively, we need to hire full-time staff to address operations and ensure we can move swiftly, particularly when it comes to communications and fundraising activities.
When will the College repay its $2 million loan from the AAMC?
Currently, under the provisions of our loan agreement, Mills pays AAMC interest on a monthly basis. However, since AAMC is a Mills creditor, we anticipate that repayment of the loan will be part of ongoing negotiations with Northeastern.
What is the end goal for AAMC?
Above all, the AAMC will continue to promote the interests of Mills College alumnae through programs, opportunities, lifelong learning, and fostering alumnae connections. It will also function as a guardian of the rich and diverse Mills traditions we all cherish.
In the coming months, we will work to unify our membership and work on short and long-term goals to ensure that the AAMC remains vibrant and inclusive of all its alumnae.
You may also read the FAQs published in July 2021 when the lawsuit was first filed.