BATH (AP) – The Bath Board of Education has approved a $75,000 settlement with a bus transportation company that came under fire last fall for missing stops and being late when bringing students home.

After the school system fired First Student Inc., the company filed a lawsuit in U.S. District Court claiming that school officials were responsible for the scheduling problems.

The settlement includes $40,000 to cover First Student’s services during the first three weeks of school, plus an additional payment of $35,000.

“Considering everything that happened we felt this was a fair settlement,” William Torrey, chairman of the Board of Education, said.

“But obviously we would have preferred not to have paid $35,000 to settle this. We felt we would have prevailed if this had gone further.”

Torrey said school officials feared the cost of a trial might cost Bath more than $75,000 in legal fees.

The Bath Bus Service, which was hired to replace First Student, will provide student transportation services through 2006.

AP-ES-04-15-04 0216EDT