We also thank the mediator and all who participated in crafting this settlement.
Under the terms of the settlement, the claimants in the lawsuit will receive $425 million and $75 million will be put into a trust fund for "any future claimants alleging sexual abuse by Larry Nassar".
State regulators filed a complaint Wednesday against Dr. William Strampel, who was dean of Michigan State University's medical school. She says the deal will help the "sister survivors" move forward, and her decision to come forward publicly in 2016 was motivated by the need for accountability and reform, "so that other little children don't live the nightmares we lived". 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.
"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". Lawsuits still are pending against Indianapolis-based USA Gymnastics, the U.S. Olympic Committee and an elite gymnastics club in the Lansing-area where assaults occurred. The university faces claims from at least 300 victims.
The case against Nassar shook Michigan State and led to accusations that the university covered up his abuse and ignored repeated complaints about his behavior over many years.
The institution said no confidentiality agreements or no-disclosure agreements would be attached to the settlement, which it described as agreed to "in principle".
Wednesday's settlement only addresses claims against the university.
MSU Trustee Dianne Byrum had this to say after the settlement was reached, "I am pleased a settlement has been reached with the fearless young women whose lives have been impacted by this tragic situation".
Strampel failed to enforce protocols meant to protect female patients following allegations against Nassar at the MSU Sports Medicine Clinic. He was sentenced to more than 100 years in prison.
How MSU will pay for the settlement is under careful scrutiny by parents, students, alumni and financial rating agencies.
MSU Interim President John Engler said that the school will use tuition money and state aid to pay for the $500 million in damages, though some lawmakers are against using taxpayer money to cover the cost of the settlement. That's 29% of its total revenue of $2.9 billion.
It's like a family's savings account where money is set aside for a new auto, a new roof for the house and other projects.
The two biggest chunks of what MSU has set aside are its unrestricted net assets for infrastructure ($557 million) and programs ($400 million). The rating drops MSU to Aa2 from Aa1, affecting approximately $975 million of rated debt. "But I also think there is so much more work to be done at that university and universities across the country". It's also unclear where the money will come from. The firm said it isn't sure how all the fallout will shake out.