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Lawsuit blaming PSU frat board for student death voluntarily dismissed

From PennLive

WILLIAMSPORT – A federal lawsuit that placed blame for a hazing death on members of the board that owns a Penn State fraternity house has been voluntarily dismissed.

U.S. Middle District Judge Matthew W. Brann on Wednesday, upon receiving that notification, formally dismissed the suit against 11 board members of AY Corp.

The non-profit organization consists of fraternity members after they graduate and has since 1894 leased the Beta Theta Pi house to the chapter and active members.

Donald G. Abbey, a former AY Corp. board member, had accused 11 board members of failing to implement and enforce policies that would have prevented the alcohol-related, hazing death of Timothy Piazza.

Piazza, a sophomore, died Feb. 4, 2017, two days after he fell down stairs while intoxicated during hazing events. His injuries included a skull fracture and a lacerated spleen.

Attempts to reach Abbey’s lawyers were unsuccessful, and defense attorney David Helwig declined comment on the dismissal.

Abbey, a former Penn State football player who in 1990 founded a real estate operating company that has offices in six California counties, had charged the AY Corp. board members intentionally or recklessly:

– Enabled rampant underage drinking and alcohol-related hazing that among things resulted in Piazza’s death.

– Interfered, refused to cooperate and tampered with evidence related to ongoing criminal investigation into the death.

– Wasted corporate assets by causing AY to unnecessarily spend substantial funds on lawyer fees to protect the personal rights and interests of one board member.

– Caused AY to operate the house in an unlawful manner and for an unlawful purpose.

– Caused AY to breach written contractual obligations to Abbey.

The latter is in reference to Abbey in June 2009 signing a written agreement to loan AY Corp. more than $10 million to repair, improve, recolonize and operate the fraternity house. The agreement required repayment within 60 days if the chapter ceases to exist and the house no longer is utilized to house active members.

Following Piazza’s death, Penn State initially withdrew its recognition of the chapter but on March 30, 2017, banned it from ever returning.

The lawsuit pointed out in the early 2000s the chapter had a similar problem with alcohol abuse and hazing. To address it the chapter was disbanded and all members evicted in the spring of 2009.

It was AY Corp.’s intention to recolonize the chapter and hire responsible adults to live in an alcohol-free house to monitor activities, Abbey said.

After this was done active members sought to do away the “dry” status and the court complaint stated some of the board member defendants championed that change.

Abbey opposed allowing alcohol in the house and, despite his financial commitment to AY Corp., he was replaced on the board on Sept. 13, 2016. Criminal charges related to Piazza’s death were filed in against more than two dozen former fraternity brothers.

Of those, 21 have pleaded to minor offenses or entered a probation program that upon successful completion make them eligible to have their records expunged.

Abbey’s suit had accused board member William F. Cassidy, a Pennsylvania resident, of directing certain chapter members to destroy or conceal evidence related Piazza’s death.

The FBI was able to restore the deleted basement camera footage and it was used as evidence in the criminal cases. James and Evelyn Piazza in January filed a federal suit in which they accuse 23 former fraternity brothers with conspiracy and negligence related to their son’s death.

Many of the defendants have moved for dismissal while others are seeking a stay until criminal charges against them are resolved.

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