The former state employee who accused California State Treasurer Fiona Ma of sexual harassment has dropped the case against her, ending a three-year court battle that was scheduled to go to trial next month.

Judith Blackwell, the former head of the California Tax Credit Allocation Committee, alleged sexual harassment, racial discrimination and wrongful termination in the lawsuit, which was filed in July 2021, about six months after she was fired.

The decision to drop the case is expected to be filed in Sacramento Superior Court on Friday, less than two weeks before the issue was set to go to trial. The trial would have focused on sexual harassment and intentional infliction of emotional distress charges. The court had already tossed the allegations of wrongful termination, race and disability discrimination.

Ma's Attorney, Ognian Gavrilov, confirmed Blackwell and the state of California are settling through terms worked out with the Department of Justice. Blackwell will receive $300,000. Gavrilov said settlements like this typically cost millions.

Ma, who is running for lieutenant governor in 2026, has said the allegations were frivolous, repeatedly stated she refused to settle and had always been prepared to go to trial.

"I'm not happy they're getting anything, I really wanted my day in court," Ma told KCRA 3 in an exclusive, on-camera interview. "But now I can put it behind me, and I guess that's a relief. It's been a long three years, and I've learned anyone can file a lawsuit against anybody else, say things that are not substantiated or proven, and it takes time; it takes money; it takes a lot of heartache to go through a process like that."

Ma said Blackwell's decision to drop the case came days after Ma hired Gavrilov to represent her at trial. Gavrilov said he and Ma blocked multiple attempts by Blackwell to settle.

"This is a complete victory for the treasurer," Gavrilov said. "We were ready to have the truth be brought to light in the courtroom, but the attorneys for the plaintiff clearly did not want a trial."

"Ms. Blackwell is pleased to have reached an amicable resolution of her case and is looking forward to putting this chapter of her life behind her." Blackwell's attorney, Waukeen McCoy said in a statement to KCRA 3.

"The resolution of these claims were reached prior to Ms. Ma retaining new counsel and the substitution of her attorney had no bearing the settlement that was reached," McCoy said.