The long‑simmering fight over veteran Palo Alto physical‑education teacher Peter Colombo has ended with a multimillion‑dollar check. This week, the Palo Alto Unified School District board signed off on a $3.25 million settlement to resolve Colombo’s lawsuit against the district, filed after criminal charges tied to an alleged 2001–02 assault were dropped and an outside review later found the complaint unsubstantiated. The deal closes a case that has sharply divided parents, staff and board members for years.
Board signs off behind closed doors
Court records show the school board approved the agreement in a closed‑session meeting, after which attorneys notified the judge that the settlement had been ratified. The filings do not reveal whether the district will cover the payout through insurance or another funding source, leaving that financial detail still out of public view, as reported by Palo Alto Daily Post.
Law firm touts $3.25 million win
Colombo’s lead attorney, Evan C. Nelson, states on his law firm’s website that he secured a $3.25 million settlement for Colombo, who has roughly 27 years of service in the district. The firm also notes it represented him during teacher‑credential reviews and throughout the district’s internal investigation process, per Evan C. Nelson.
From an email to an arrest
The controversy began when the district received an email on Jan. 28, 2022, alleging that Colombo raped a middle‑school student during the 2001–02 school year. The district forwarded the allegation to police, and Colombo was arrested and charged in 2022. The Santa Clara County District Attorney’s Office later declined to move the criminal case forward, a decision that became a key thread in Colombo’s subsequent civil claims against the district, according to Palo Alto Online.
Outside probe clears allegation as unsubstantiated
An outside investigation wrapped up in May 2024 and concluded the allegations were unsubstantiated. Following that finding, the district initially assigned Colombo to a special role without student contact for the 2024–25 school year. Both the outcome of the investigation and the district’s subsequent personnel moves became central issues in Colombo’s lawsuit against PAUSD, as reported by Palo Alto Daily Post.
Classroom comeback sparks backlash
When the district later returned Colombo to a classroom position at Fletcher Middle School in August 2025, the decision set off a wave of backlash. Parents organized a petition and staged an outdoor protest calling for his removal, arguing that reinstating him eroded community trust even after prosecutors declined to pursue the criminal case, per The Campanile.
Settlement reached on brink of trial
Colombo filed his civil suit in February 2024, accusing the district of retaliation and civil rights violations. A federal jury trial was scheduled for Jan. 26, 2026, but was postponed as settlement discussions gained traction. Court dockets show the case moved through a series of pretrial orders and settlement conferences before lawyers informed the court that the dispute had been resolved, according to Pacermonitor.
Key details still behind the curtain
Both Nelson’s website and the court notice confirm that a signed agreement is in place, but the public filings so far do not explain how the district will book the $3.25 million payment or whether insurance will ultimately cover the cost. Nelson’s page identifies Colombo as the settlement recipient and underscores his long tenure with the district, per Evan C. Nelson.
