The First Step Shelter has agreed to pay two former employees a total of $440,000 to settle a whistleblower lawsuit, according to a statement provided to The News-Journal.
Patrick Smith, the former director of philanthropy, will receive $300,000 in the settlement, according to his attorney, Kelly Chanfrau. Pamela Alexander, the former housing director, settled the case a couple of weeks earlier and received $140,000, said Chanfrau, who represented Alexander as well.
Smith and Alexander filed the lawsuit against First Step Shelter in December 2024, alleging they were fired in retaliation for their complaints against the shelter and had been publicly defamed by both the shelter and the city of Daytona Beach, according to a previous News-Journal story.
The city of Daytona Beach was subsequently dismissed from the lawsuit early in the case.
The lawsuit was amended to add Victoria Fahlberg as a defendant on April 1, 2025. At the time, Fahlberg was the executive director of the First Step Shelter, a post she had held since it opened. Fahlberg resigned in April 2026.
The lawsuit alleged fraudulent activities, harassment and retaliation against employees who complained, the fostering of a toxic work environment and discriminatory practices, among other allegations.
Chanfrau released a statement Oct. 1 saying that Smith, the First Step Shelter and Fahlberg "had resolved all claims between them."
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