Michigan State U. will pay victims of Larry Nassar’s sexual abuse $500 million to settle their claims, the university said on Wednesday. Kyle Stephens (center) has publicly criticized the university’s handling of the scandal.Jeff Kowalsky/Getty Images
Michigan State University will pay $500 million to settle with the victims of Larry Nassar’s sexual abuse, the university announced on Wednesday in a news release.
Nassar, a former Michigan State professor of osteopathic medicine and team physician for USA Gymnastics, was convicted of sexually assaulting hundreds of young women and girls, and hundreds of lawsuits, representing 332 victims, were filed against the university.
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Michigan State U. will pay victims of Larry Nassar’s sexual abuse $500 million to settle their claims, the university said on Wednesday. Kyle Stephens (center) has publicly criticized the university’s handling of the scandal.Jeff Kowalsky/Getty Images
Michigan State University will pay $500 million to settle with the victims of Larry Nassar’s sexual abuse, the university announced on Wednesday in a news release.
Nassar, a former Michigan State professor of osteopathic medicine and team physician for USA Gymnastics, was convicted of sexually assaulting hundreds of young women and girls, and hundreds of lawsuits, representing 332 victims, were filed against the university.
Michigan State will pay $425 million now and put $75 million in a trust fund for anyone who alleges in the future that Nassar sexually abused them, according to the release.
The settlement applies only to Michigan State and “MSU individuals sued in the litigation,” the release states.
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“This historic settlement came about through the bravery of more than 300 women and girls who had the courage to stand up and refuse to be silenced,” said John Manly, a lawyer representing the survivors, in a written statement.
Within a year the university lost two chief executives — Lou Anna K. Simon, sank by the scathing, heart-rending testimony of the sports doctor’s scores of victims, and John M. Engler, whose interim presidency ended amid a backlash over his bare-knuckled tactics.
In March, John Engler, the university’s interim president, told state lawmakers that money for such settlements would probably be drawn from tuition and state funds, The Indianapolis Star reported.
But some Michigan lawmakers criticized Engler’s plan to use taxpayer dollars to help pay for settlements.
A university spokeswoman did not immediately respond to an inquiry about where the money for the settlements would come from.
Moody’s Investors Service downgraded the university’s long-term credit rating this month because of the “heightened financial risk” from the number of Nassar-related lawsuits.
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“The negative outlook reflects uncertainty around timing of resolution of litigation and the magnitude of the financial and reputational ramifications to the university,” Moody’s said. “Further, the negative outlook signals continued scrutiny of senior leadership and management that could ultimately require years to resolve.”
Fernanda is the engagement editor at The Chronicle. She is the voice behind Chronicle newsletters like the Weekly Briefing, Five Weeks to a Better Semester, and more. She also writes about what Chronicle readers are thinking. Send her an email at fernanda@chronicle.com.
