The money will be paid by the Albuquerque Public Schools and the former teacher, Robert Ashley, the Albuquerque Journal reported. A federal judge approved the payment Thursday.
Ashley, 66, was the first person to be convicted under a new state voyeurism law. He was sentenced to 18 months in prison and has been released after doing his time, his lawyer said.
The lawsuit filed in 2009 alleges the girl, now 9, suffered great stress from the incident, which occurred when she was a 7-year-old second-grader. But Michael Hart, the guardian ad litem named to oversee her interests in the case, said she had personal problems before she encountered Ashley that would have complicated a trial before a jury.
The girl will receive $32,000 after payment of legal fees. Robynn Sena, her lawyer, who has agreed to act as her trustee without pay, said the money will probably be used for private school tuition.
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