The potentially precedent-setting trial in Los Angeles features plaintiffs seeking to overturn seniority, tenure, and dismissal procedures.
Four schools in the district will have to change their mascots by next fall when the policy takes effect.
A state criminal investigation is also under way, according to the Philadelphia Inquirer.
Precisely how to divvy up the billions in extra dollars for K-12 schools is the subject of fierce debate among state education officials, local educators, and advocates for English-learners and low-income students.
The state department of education says the inaccurate data may have led to school report card inflation in the districts.
Districts would be dismantled and replaced with a state-run entity that would hand management of individual schools over to nonprofit operators.
The agreement sets an end date for nearly $70 million in desegregation aid that Arkansas pays to Little Rock and two other school districts.
After shutting down 30 schools over the last two years, education officials in the city have decided to spare the district from additional closures in 2014.
AASA, the School Superintendents Association, will announce the winner for 2014 at its conference in February.
Nearly half of all former educators indicted in the sprawling cheating case have pleaded guilty to less charges in exchange for their cooperation. The rest will stand trial later this year.