City attorney presents $35 million proposed settlement in 1999 "yogurt shop" wrongful-conviction cases
May 28, 2026 | Austin, Travis County, Texas
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City staff told the council on May 28 that mediation has produced a proposed settlement of federal claims related to the 1999 "yogurt shop" criminal cases. The claims arose after new forensic evidence led to the exoneration of four men in 2025.
City Attorney Deborah Thomas presented the settlement terms in public: a proposed total of $35,000,000 was reached in mediation. The action before council authorized the city manager to execute the settlement agreement and to file agreed federal-court documents; it also authorizes an initial payment of $450,000 from the liability reserve fund. Staff said the city manager will return to council with an ordinance to issue general-obligation refunding bonds for the remaining amount owed.
Why it matters: The settlement addresses long-running civil claims arising from a high-profile criminal case. The council and staff framed the step as part of closing a painful chapter for the men wrongfully accused and for the city.
What happens next: The council asked questions of counsel and indicated readiness to proceed with the authorization as presented; staff will return with the bond-refunding ordinance to finance the remaining settlement amount.
Attribution: The settlement details were presented by the city attorney in open session; the council's acceptance authorized execution of the agreement and initial payment.
City Attorney Deborah Thomas presented the settlement terms in public: a proposed total of $35,000,000 was reached in mediation. The action before council authorized the city manager to execute the settlement agreement and to file agreed federal-court documents; it also authorizes an initial payment of $450,000 from the liability reserve fund. Staff said the city manager will return to council with an ordinance to issue general-obligation refunding bonds for the remaining amount owed.
Why it matters: The settlement addresses long-running civil claims arising from a high-profile criminal case. The council and staff framed the step as part of closing a painful chapter for the men wrongfully accused and for the city.
What happens next: The council asked questions of counsel and indicated readiness to proceed with the authorization as presented; staff will return with the bond-refunding ordinance to finance the remaining settlement amount.
Attribution: The settlement details were presented by the city attorney in open session; the council's acceptance authorized execution of the agreement and initial payment.
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