California taxpayers will pay $350,000 to settle a lawsuit filed by a former state employee who alleged Treasurer Fiona Ma, who is now running for lieutenant governor, sexually harassed her.
The former employee, Judith Blackwell, worked with Ma as executive director of the California Tax Credit Allocation Committee. Blackwell filed the lawsuit in 2021 in Sacramento County Superior Court after she was fired.
The complaint alleged that Ma had offered to let Blackwell stay in hotel rooms and, later, at an Airbnb in Sacramento with Ma and her chief of staff to avoid an hour-long drive home after dark. The suit said Ma repeatedly flashed her “bare butt” at Blackwell in the hotel room and once crawled into Blackwell’s bed at the Airbnb while she was sleeping.
Last year, a Sacramento County judge dismissed Blackwell’s claims of wrongful termination and racial discrimination but allowed the sexual harassment allegations to go forward. A trial was scheduled for Sept. 9.
“I have said from day one that this was a frivolous lawsuit filed by a disgruntled employee who fabricated allegations in an attempt to embarrass me in hopes of receiving millions of dollars in a settlement,” Ma said in a statement Friday. “After three years of delay, I have been fully vindicated and can continue my work on affordable housing, climate action and job creation without distraction.”
Waukeen McCoy, the San Francisco attorney who represented Blackwell, said Ma's characterization of the case as a vindication was “nonsense.”
“I can’t understand how she thinks she’s been vindicated; my client has been vindicated,” McCoy said. “It seems like Ms. Ma doesn’t feel like she did anything wrong. She doesn’t take responsibility for her actions, which is unfortunate.”
The $350,000 settlement agreement was signed by attorneys for the state Department of Justice and the state Treasury, both dated Friday.
Ma was elected state banker in 2018 and previously served in the California Assembly, where she authored laws banning toxic chemicals and strengthening protections for victims of domestic violence.
Ma is a certified public accountant and has also served as a member of the California Board of Equalization and the San Francisco Board of Supervisors.
