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Michigan State University Pays Off $500 Million in Nassar Settlement


After months of delay in paying the victims of 54-year-old physician Larry Nassar, the Michigan State University on Tuesday transferred the settlement amount into a court-created settlement fund.

Out of $500 million, the university made a $425 million payment to the Qualified Survivor Fund and $75 million was set aside in a litigation fund.

“Making the payment on this settlement is an important step for the university, but it is not the only way MSU is accountable to those harmed,” Interim President John Engler said.

“The entire campus is focused on implementing the improvements we’ve made in health care practices, reporting policies, campus-wide sexual assault education and prevention efforts and trauma-informed responses and treatment for survivors.”

In May, the university agreed to settle the lawsuit by paying $500 million to 332 victims of sexual abuse by Nassar, who was sentenced to 40-175 years in prison after he was found guilty of three child pornography charges and 10 sexual assault charges. He is serving his sentence at the United States Penitentiary in Tuscon, Arizona.

The terms of the settlement included $425 million to be paid to current claimants and $75 million to be set aside in a trust fund to protect any future claimants alleging sexual abuse by the physician.

In July, the university sued all its insurance carriers for failing to honor their policies regarding the policies and coverage for sexual assault claims.

Michigan State Sees Decline in New Applications Post Nassar Scandal

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