Michigan State Settles in Principle With Nassar Victims for $500M
Current claimants will split $425 million and another $75 million will be set aside for future claimants.
May 16, 2018 at 01:40 PM
4 minute read
Photo Credit: Katherine Welles/Shutterstock.com
Michigan State University said Wednesday it has reached a global settlement in principle totaling $500 million with 332 victims of sexual abuse by MSU sports doctor Larry Nassar.
The terms of the settlement include $425 million to be paid to current claimants with $75 million set aside in a trust fund for any future claimants. At about $1.3 million per claimant, the settlement falls well short of the $3 million per person average that Penn State University paid to sexual abuse victims of a former coach, Jerry Sandusky.
Michigan State said the settlement covers both the university and numerous individual employees. The defendants included former general counsel Robert Noto and assistant general counsel Kristine Moore. Noto resigned under pressure from the scandal in mid-February.
“Michigan State is pleased that we have been able to agree in principle on a settlement that is fair to the survivors of Nassar's crimes,” said Robert Young Jr., a partner in the Lansing, Michigan, office of Dickinson Wright, who was hired Feb. 20 by MSU to oversee the litigation and coordinate all the legal actions and investigations against the school. His hiring coincided with Noto's departure.
Young, a former chief justice of the Michigan Supreme Court and former general counsel of AAA Michigan, said, “We appreciate the hard work both sides put into the mediation, and the efforts of the mediator, which achieved a result that is responsible and equitable.”
MSU also hired Skadden, Arps, Slate, Meagher & Flom to litigate the suits in U.S. District Court for the Western District of Michigan, along with Detroit-based Miller, Canfield, Paddock and Stone. The court will have to sign off on a final agreement.
A statement from plaintiffs attorney John Manly said, “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. We appreciate the diligent efforts of Mick Grewal Sr. [managing partner of Grewal Law in Lansing] and the survivors' attorneys throughout the nation who worked to obtain this measure of justice and healing.”
Manly also thanked the mediator. “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,” he added.
The school said there will be no confidentiality agreements or nondisclosure agreements attached to the settlement. Additionally, the parties must act to address items necessary to finalize the agreement. Those items were not immediately made public.
The MSU board of trustees signed off on the agreement during a conference call held Tuesday night.
In a statement sent to Corporate Counsel on Wednesday afternoon, Brian Breslin, the board's chair, called the resolution to the litigation “a positive step in moving us all forward.”
“We are truly sorry to all the survivors and their families for what they have been through, and we admire the courage it has taken to tell their stories,” he said. “We recognize the need for change on our campus and in our community around sexual assault awareness and prevention.”
Interim MSU President John Engler said in another statement that successful mediation has been a priority for him since arriving on campus earlier this year.
“Today's announcement is important in the healing process for both the survivors, but also for the university as we collectively move forward. I thank all who have worked so hard to get to this fair and equitable outcome,” he said.
The settlement does not apply to claims against USA Gymnastics, the United States Olympic Committee, Bela and Martha Karolyi, Twistars, John Geddert or any other parties formerly connected to Nassar, the school said.
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