MARSHALL — A lawsuit filed by a former Marshall Middle School principal against the Marshall School Board has been dismissed in federal court, court documents said.

On Wednesday, a U.S. District Court judge issued a ruling in favor of Marshall Public Schools and members of the Marshall School Board, and dismissing Mary Kay Thomas’s claims of discrimination and workplace retaliation against her.

Thomas sued the school district and the school board in 2021, claiming the district violated the Minnesota Human Rights Act, federal anti-discrimination laws, and the U.S. Constitution. The lawsuit also claimed Thomas was the victim of sexual harassment by school board member and former principal Bill Swope.

“While we were disappointed by the Court’s decision issued yesterday afternoon, this matter is not over,” David Schlesinger, an attorney representing Thomas, said Thursday. “Ms. Thomas may now file claims in state court under the Minnesota Human Rights act, or she may appeal to the 8th Circuit Court of Appeals. We are considering our next steps.”

In a news release sent out Thursday, the school district said, “Marshall Public Schools is ready to close the chapter on this prolonged and costly unjustified litigation. Superintendent (Jeremy) Williams intends to continue to focus on student achievement and fostering a positive school atmosphere at MPS.”

“I am proud to serve this district, where we honor and support each and every student, ensuring they have the opportunity to learn and grow in a positive environment,” Williams said in the release.

In her lawsuit, Thomas had alleged that MPS removed her as middle school principal and put her on a performance improvement plan. The school district’s actions came after Thomas refused to take down a rainbow LGBTQ+ pride flag from a display in the middle school cafeteria, and showed support for a student gay-straight alliance, the complaint alleged. The school district’s actions also came after Thomas resisted sexual harassment from a school board member in 2019, the complaint alleged.

The rainbow flag was the subject of a different lawsuit, brought against the school district by a group of Marshall area residents in 2021. The lawsuit was settled later that year, and a display of flags, including the rainbow flag and the flags of the U.S. and other nations, was taken down at MMS.

Thomas’s lawsuit against the school district went into mediation in 2023. However, Thomas and MPS were unable to reach a settlement after more than five hours of discussion, court documents said. Both Thomas and the school district filed motions asking for a judge’s ruling on the case instead.

In his ruling Wednesday, U.S. District Court Judge Patrick J. Schiltz said Thomas’s claims of being discriminated against for advocating on behalf of LGBTQ+ students did not fall under the scope of Title VII of the Civil Rights Act. Title VII protects employees from discrimination on the basis of factors like race, religion, sex or national origin. Similarly, the judge ruled that Thomas’ claims did not fall under the scope of Title IX, with prohibits sex discrimination at institutions that receive federal funding.

The judge’s ruling also found that Thomas did not face retaliation for exercising her First Amendment rights.

The ruling dismissed Thomas’ claims of discrimination and retaliation with prejudice, which means the dismissal is final. Her other claims were dismissed without prejudice.

In 2021, Thomas was reassigned to a new administrative role, “coordinator of special projects,” at MPS. On Thursday, Williams said the ruling in the lawsuit did not impact Thomas’s employment at the school district.