Michigan State agrees to $500M settlement of Nassar lawsuits

Larry Nassar is sentenced to up to 175 years in prison for decades of sexual abuse

Larry Nassar is sentenced to up to 175 years in prison for decades of sexual abuse

Michigan State University said Wednesday that it will pay $500 million to the 332 alleged victims of sexual abuse at the hands of former faculty member and sports team doctor Larry Nassar to end a barrage of civil claims filed against the university over the past year. Al also reads the statement of Rachel Denhollander concerning the settlement, and gets reactions from callers who want to voice their opinions of MSU's handling of the case and of the settlement terms.

He adds that resolving the litigation "is a positive step in moving us all forward".

"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", he said in a statement.

"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", Breslin said in a statement. It does not include USA Gymnastics, the United State Olympic Committee, the Karolyi's, Twistars, John Geddert, or other parties. The university faces claims from at least 300 victims.

And assuming it becomes final, the settlement will not resolve many other aspects of this situation for Michigan State, which is under investigation by the Education Department and the National Collegiate Athletic Association.

The institution said no confidentiality agreements or no-disclosure agreements would be attached to the settlement, which it described as agreed to "in principle". This is about justice for the survivors; each of the women who came forward deserve justice. We will continue working as a Board to address the necessary changes and improvements that are needed at our university.

"This settlement from Michigan State is a huge victory for the survivors as it (is) the real first sign of accountability that we've seen".

He was sentenced to 60 years in prison on child pornography charges, 40 to 175 years in prison on sexual assault charges and 40 to 125 years in prison on additional sexual assault charges.

How MSU will pay for the settlement is under careful scrutiny by parents, students, alumni and financial rating agencies. John Engler, interim president, said costs will be borne through a combination of tuition and state aid, as the Detroit Free Press reported. About 20 percent, or $281 million, of MSU's $1.36 billion general fund operating budget comes from state tax dollars, with $989 million in tuition and fees making up the lion's share of the university's revenues, according to fiscal year 2017-18 budget projections. That's money that isn't legally contracted to a certain project, but often is set aside for particular projects. The rating drops MSU to Aa2 from Aa1, affecting approximately $975 million of rated debt.

Thomashow also said there was more work left to be done. It's also unclear where the money will come from.

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