GASTONIA, N.C. -- A former Gaston County teacher who was unmarried and pregnant has settled her discrimination lawsuit against the county school system.

Heather Zampogna received $99,500 in a settlement, The Gaston Gazette reported Tuesday.

Zampogna filed the federal discrimination lawsuit in March 2007, claiming she was demoted a year earlier from a high-performing class at Tryon Elementary School to an at-risk class at Rhyne Elementary.

At the time she was dating a fellow teacher and discovered she was pregnant with his child. Zampogna was separated from her husband and later began teaching in Mecklenburg County.

In her lawsuit, Zampogna claimed an assistant school superintendent accused her of "immorality" and asked when she and the baby's father were going to get married.

The school board's response to the lawsuit contended the change of assignment wasn't a demotion and her pay stayed the same.

"It was a better business decision to settle," said Gaston County Schools attorney Julia Shovelin. "We were pleased with the settlement."

Shovelin said the county pays $49,500 and the school board insurance company AIG Insurance pays the other $49,500.

Of the amount, $51,410 goes to Zampogna and $48,090 goes toward attorney fees.

Shovelin said the case was the third settlement by Gaston County Schools in the past 24 years.

The case was scheduled to be tried in November.