Nassar - AP

FILE - In this Nov. 22, 2017, file photo, Dr. Larry Nassar appears in court for a plea hearing in Lansing, Mich. (AP Photo/Paul Sancya, File)

Michigan State And Nassar Victims Reach $500 Million Settlement

“We appreciate the hard work both sides put into the mediation"

May 16, 2018 - 2:57 pm

EAST LANSING (WWJ/AP) - Michigan State University has reached a $500 million settlement with hundreds of women and girls who say they were sexually assaulted by sports doctor Larry Nassar in the worst sex-abuse case in sports history.

The deal was announced Wednesday by Michigan State and lawyers for 332 victims.

According to a news release by the university, the terms of the settlement are as follows:

  • $425 million dollars will be paid to current claimants;
  • $75 million dollars will be set aside in a trust fund to protect any future claimants alleging sexual abuse by Larry Nassar
  • There will be no confidentiality agreements or non-disclosure agreements attached to the settlement. Additionally, the parties must act to address items necessary to finalize the agreement.

The settlement in principle was agreed to by the MSU Board of Trustees during a conference call Tuesday night. 

"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, special counsel to MSU. “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.”

Nassar pleaded guilty to assaulting victims with his hands under the guise of treatment. He also possessed child pornography and is serving decades in prison.

He treated campus athletes and scores of young gymnasts at his Michigan State office. He had an international reputation while working at the same time for USA Gymnastics, which trains Olympians, and assaulted Olympic gold medalists Jordyn Wieber, Aly Raisman, Gabby Douglas and McKayla Maroney, to name a few. 

Gymnast Kaylee Lorincz Gymnast Kaylee Lorincz -- who said Nassar mollested her for years, beginning when she was 11 -- says this settlement all buy proves her claim that MSU President John Engler had tried to pay her off.

"The first day of mediation, the first offer they came back with was $250,000," Lorincz told WWJ's Sandra McNeill on Wednesday. "You know, after accusing me of lying."

"So that really validates, you know, what I said about that meeting; that they did offer us $250,000 in mediation," she said. "So, for them to call me fake just validates it."

Lorincz said the settlement is a step in the right direction, but she believes more cultural changes are needed at MSU and says the money is not as satisfying as seeing Nassar behind bars.

The Associated Press contributed to this report.