Michigan State Settles Sex Cases For $500 Million
May 16, 2018 Mark Hrywna
The Michigan State University (MSU) Board of Trustees last night agreed in principle to a $500-million settlement for 332 sexual assault survivors of former doctor Larry Nassar.
Terms of the settlement stipulate $425 million will be paid to current claimants and $75 million will be set aside in a trust fund to protect any future claimants alleging sexual abuse by Nassar. There will be no confidentiality agreements or non-disclosure agreements (NDA) attached to the settlement.
MSU and survivors’ attorney John Manly announced the settlement in a joint statement. The deal applies only to Michigan State University and MSU individuals sued in litigation. It does not address claims against USA Gymnastics and United States Olympic Committee (USOC), or others parties that have been sued in connection with Nassar.
In the joint statement, MSU Special Counsel Robert Young said the two sides worked with a mediator, Mick Grewal, to achieve “a result that is responsible and equitable.”
Manly credited the more than 300 female victims who had the courage to speak out. “We appreciate the diligent efforts of Mick Grewal and the survivors’ attorneys throughout the nation who worked to obtain this measure of justice and healing,” he said. “It is the sincere hope of all of the survivors that the legacy of this settlement will be far reaching institutional reform that will end the threat of sexual assault in sports, schools and throughout our society.”
In December, MSU’s board directed the university establish a $10-million Healing Assistance Fund to provide counseling services to Nassar’s victims. MSU selected the Commonwealth Mediation and Conciliation Inc. (CMCI) and Minnesota Coalition Against Sexual Assault (MNCASA) to help facilitate access to counseling and mental health services.
Nassar, a former MSU physician and team physician for USA Gymnastics, is serving a 60-year sentence in federal prison after pleading guilty to child pornography and sexual assault charges last year.