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We live in Indiana. My 14 year old daughter was caught stealing

We live in Indiana. My 14 year old daughter was caught stealing a box of tampons from KMart. She has a court date already set with the state for criminal charges. However, I also just received a letter from an attorneys office offering a settlement of $300, at which time that is paid we would receive a release of a statutory civil "penalty" claim. I spoke with a representative of the lawyers office and she stated that this is a penalty fee for stealing, and it wouldn't have mattered if it was a $900 item, versus a box of tampons, the fee remains the same. The letter also states that if this $300 is not paid in full within 20 days, KMart may choose to prosecute for the above mentioned fee, lawyer fees, court costs, etc. Would you recommend paying the settlement, or risk the lawsuit? I feel $300 is a bit much for a box of tampons. Please advise. Thank you, XXXXX

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