Chandler City Councilmember Jane Poston announced Tuesday she plans to sue the City of Chandler and the City of Scottsdale for $5 million each. Poston alleges city officials failed to stop the spread of a rumor that the FBI was investigating her for public corruption, causing reputational and other damages, according to her prior lawsuit filings.
Poston’s announcement follows her ongoing litigation against the City of Chandler and several of its officials, including City Manager Josh Wright, Assistant Police Chief, and former Police Chief Sean Duggan. According to Poston’s prior complaint and media reports, the defamation claim initially sought $500,000 in damages from Chandler and the named officials, along with additional claims under civil rights laws.
The lawsuit, filed in 2023, centers on allegations that city officials failed to stop or correct a rumor that the FBI was investigating Poston for public corruption, which she claims caused reputational harm and other damages.
The controversy stems from an internal email sent by then-Chief Duggan to city leadership, in which he stated the FBI was conducting an active public corruption investigation involving Poston and police union leader Nate Collins. Poston publicly denied the existence of such an investigation, calling it an “unfounded rumor.” ABC15 later obtained a letter from the FBI confirming that an investigation involving Poston was opened in 2023 but was closed without any enforcement action. Poston and her attorneys cite the FBI’s closure of the investigation as vindication and argue that Chandler officials’ failure to dispel the rumor allowed it to damage her reputation and political standing.
Court records and local reporting indicate that Poston’s lawsuit against Chandler remains in the pretrial phase, with no final judgment or settlement reported. Scheduling orders referenced in regional coverage show that both parties proposed a trial date no later than November 16, likely in 2025, which would mark approximately two years since the case’s filing. Reports from mid-2024 describe the future of the suit as “unclear,” with options including trial, settlement, or dismissal still possible. Chandler city officials have denied defamation liability in legal filings, maintaining their position amid the ongoing dispute.
Regarding the City of Scottsdale, available public records and city council materials show no evidence of a filed lawsuit by Poston seeking $5 million from Scottsdale. City of Scottsdale risk-management and settlement lists reviewed for the period from 2022 to 2026 do not include any claim by Poston or any Chandler councilmember for that amount. The only notable recent settlement involving Scottsdale was the unrelated case Reddell v. City of Scottsdale, which resolved for $105,000. Scottsdale’s public records and local news coverage have not documented any litigation or formal claim involving Poston against Scottsdale, and no verified court docket entries support the existence of a $5 million claim against that city.
Poston has issued written statements denying any wrongdoing and characterizing the FBI investigation narrative as baseless. She said she initially treated the rumor as unfounded until it began to affect her reputation and council work. Her legal team contends that Chandler’s leadership breached their duty by allowing the rumor to circulate unchecked. Former Chief Duggan’s email, as reported, indicated that information obtained by the FBI suggested potential violations of federal law by Poston and Collins, which Duggan relayed to senior city staff as part of his official responsibilities. The FBI’s letter, obtained by ABC15, confirms the investigation but notes it was closed without any charges or enforcement, providing the only federal-level official statement on the matter.
The litigation remains active, with no publicly reported award approaching the $5 million figure cited in Poston’s announcement. The $500,000 defamation damages claim against Chandler and its officials remains the baseline amount referenced in court filings and media reports. Sources caution that the $5 million figure attributed to each city may reflect a contemplated or future demand rather than a formally filed claim, as no independent court records or city council documents verify such an amount against Scottsdale. The case continues to unfold in Maricopa County Superior Court, with trial-setting conferences and deadlines adjusting as the parties prepare for possible litigation later in 2025.
Poston was first elected to the Chandler City Council as an at-large member in 2022. The dispute over the FBI investigation rumor has been a focal point of her public and legal battles since 2023. City of Chandler officials, including the current council majority and city manager, have not publicly admitted any wrongdoing related to the spread of the rumor and continue to contest the allegations in court. Meanwhile, Scottsdale city officials have not acknowledged any involvement or claim related to Poston. The legal proceedings against Chandler are ongoing, with no final resolution reported as of mid-2024.
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