Old Orchard Beach will pay its former town manager $150,000 as part of the deal to settle his wrongful termination lawsuit.

The town released additional information about the deal on Tuesday, but did not release the full settlement agreement and said other details are confidential.

Former Town Manager Mark Pearson was ousted in March 2013 after months of political turmoil in town and a 4-3 vote by the Town Council to terminate his contract about one year before it was due to expire.

Pearson filed a lawsuit against sued the town in April 2013, saying the council violated his contract, the town charter and the state and federal constitutions by voting to terminate his contract without cause.

The town will contribute $45,000 toward the settlement amount, with the rest covered by insurance, Town Manager Larry Mead said. The settlement came out of an April 29 mediation session.

The Town Council voted 7-0 on May 13 to accept the settlement.

“The town’s acceptance of a settlement should not be interpreted as an acknowledgment of the validity of the claims made against the town,” Mead said in a statement. “The Town Council’s decision to settle the dispute was made out of consideration for the uncertain potential financial exposure to the town that is inherent in this type of litigation.”

Pearson, who started his job in February 2012, was Old Orchard Beach’s fourth manager since 2003. His termination for undisclosed reasons prompted one residents group to start a petition drive to force a recall vote on each of the four councilors who voted to fire him. A second group sought to recall the other three councilors.

In June, all but one of the seven councilors were recalled in a divisive election. The only councilor who survived the recall, Vice Chairman Bob Quinn, participated in the mediation with Pearson, representing the town along with Mead.

Gillian Graham can be contacted at 791-6315 or at:ggraham@pressherald.comTwitter: grahamgillian