PINE BUSH, N.Y. – An upstate New York school recently settled an anti-Semitism bullying lawsuit by agreeing to pay $4.48 million to the student victims and enact new policies to curb future abuse.

School administrators agreed to the settlement in the lawsuit that charged the district with failing to protect Jewish students from constant bullying and racial slurs, including Nazi salutes and “White Power” chants, the New York Times reports.

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Students are slated to receive about two-thirds of the payout, with the remainder going to attorneys.

“Anti-Semitic harassment is wrong,” the district and plaintiffs wrote in a joint statement on the Pine Bush Central School District website. “The district will never condone anti-Semitic slurs or graffiti, Holocaust ‘jokes’ or physical violence. No family should have to experience the hurt and pain that bullying and name-calling can cause children to endure because of their religious, national or cultural identity.”

The lawsuit, filed in 2012, alleges district officials were deliberately indifferent to anti-Semetic bullying at three schools in multiple grade levels. Students targeted by the bullying suffered depression, and the harassment took a toll on their grades, according to the lawsuit.

Beyond the payout, the settlement also calls for district officials to immediately and thoroughly investigate any future accusations of anti-Semitic bullying, institute training for staff on recognizing and reporting anti-Semitic student behavior, and to revise the district’s discrimination policy to specifically address Jewish students, the Times reports.

The district is also tasked with developing a better diversity and bullying curriculum in consultation with the Anti-Defamation League.

The settlement, which has yet to gain formal approval by the judge, would also require district officials to work with the U.S. Department of Education’s Office for Civil Rights to develop the new policies, training and curriculum, the Poughkeepsie Journal reports.

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“The purpose of the required reforms is simple: to ensure that no student in the district has to endure such horrific anti-Semitic or racist harassment ever again,” IIann Maazel, attorney for the plaintiffs, told the Journal.

Co-counsel for the plaintiffs, Adele Kimmel with the legal group Public Justice, told the Times the settlement’s stipulations “are a blueprint for what school districts across the country should do to prevent and address bullying in their schools.”

Jewish Pine Bush students testified to about three dozen anti-Semitic acts of harassment, and believe district officials simply didn’t do enough to stop the abuse.

In one example, the lawsuit details an email exchange between the district’s former superintendent, Philip Steinberg, and a Jewish parent concerned about her daughter and another student harassed as school, according to the Times.

“I have said I will meet with your daughters and I will,” Steinberg wrote, “but your expectations for changing inbred prejudice may be a bit unrealistic.”

Steinberg, who is Jewish, previously described the lawsuit as a “money grab” based on “embellished” claims, the news site reports.

In 1975, Pine Bush was the home of the Grand Dragon of the Independent Northern Klans, Inc., the state’s largest order of the Klu Klux Klan. A March 1975 publication cited by the New York Times includes an anonymous quote about the Grand Dragon, Earl Schoonmaker, Jr.:

“The Schoonmakers are some of the really great people of our time. They’re not afraid to stand up for what they believe in is right. The liberals would give the country over to the ni***rs and the Jews who control the businesses and the news media. Earl won’t do that and neither will we. We’re going to keep it where it belongs – with the white people,” the quote read.

Other media reports linked the Pine Bush klan with others in Queens, New York and detailed Schoonmaker’s influence at the time in prisons and schools.