A Tennessee Christian school has agreed to pay $10,000 to settle a lawsuit brought by a former student who was suspended and barred from her graduation ceremony after she came out as gay on social media. The settlement, finalized in a judgment entered Monday, resolves the legal battle between Morgan Armstrong and Tennessee Christian Preparatory School near Chattanooga.

Under the terms of the settlement, the private school will also rescind Armstrong's suspension. Armstrong, who was 18 at the time, filed the suit in May 2025 after administrators disciplined her in April 2025 for an Instagram post captioned “cats outta the bag,” which showed her kissing and holding hands with a woman.

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Armstrong’s lawsuit alleged that the school’s top administrators suspended her less than a week after the post, barred her from all school events—including her graduation—and threatened to withhold her diploma. She also claimed the school warned it would make disparaging remarks to prospective colleges if she or her family engaged in “online slander” about the institution.

Tennessee Christian Preparatory School denied the allegations and argued that Armstrong violated school policies for reasons unrelated to her sexual orientation. In a statement to local affiliate WTVC, the school cited academic issues, excessive tardiness, and unpaid enrollment fees. “Tennessee Christian and the Armstrong family disagree regarding the extent to which Morgan Armstrong violated school policies,” the statement read. “Both parties acknowledge that this disagreement remains unresolved and have mutually agreed to move forward.”

Daniel Horwitz, Armstrong’s attorney, framed the settlement as a victory for LGBTQ+ students. “School is a place where every student is entitled to feel welcome, accepted, and supported,” he said in a statement. “It is not a place where any administrator should feel comfortable disciplining or threatening kids for being gay. We hope Morgan’s bravery will inspire others to stand up for themselves the way that she did.”

Armstrong defended her decision to go public with her relationship, telling The Washington Post, “Everyone else gets to post their boyfriend or girlfriend. So just because I have a girlfriend and I’m a girl, why does that mean that I shouldn’t be able to?”

The case echoes broader debates over LGBTQ+ rights in religious schools, where policies often clash with anti-discrimination norms. In a similar vein, a former Olympian recently argued her rights were violated in a high-profile arrest, highlighting ongoing tensions between individual liberties and institutional rules.

Meanwhile, a bipartisan bill in Congress seeks to address school safety gaps, though it does not directly address discrimination based on sexual orientation. The Armstrong settlement, while modest in financial terms, underscores the legal risks for schools that discipline students for coming out.