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Michigan State University Reaches $500 Million Settlement With Larry Nassar Victims

Larry Nassar apologized to the court stating "The visions of your testimonies will forever be present in my thoughts," the 54-year-old disgraced former doctor said about the victim impact statements.

EAST LANSING, Mich. — Michigan State University will pay $500 million to settle lawsuits brought by 332 victims of Larry Nassar, the former associate professor and doctor who sexually abused hundreds of young girls and women.

The terms of the settlement include $425 million paid to current claimants, and $75 million set aside in a trust fund to protect “any future claimants alleging sexual abuse by Larry Nassar,” according to a joint statement from plaintiffs’ attorney John Manly and Michigan State University.

The settlement only deals with accusations against Michigan State. It does not address lawsuits against USA Gymnastics, the US Olympic Committee, gymnastics coaches Bela and Martha Karolyi, or other parties.

The settlement in principle was agreed to by Michigan State’s board of trustees in a conference call Tuesday night, the statement 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,” Manly said in a statement.

“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.

Robert Young, special counsel to Michigan State, said the university is “pleased that we have been able to agree in principle on a settlement that is fair to the survivors of Nassar’s crimes.

“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,” Young said.

Kaylee Lorincz, who spoke about Nassar’s abuse in court, had a mixed reaction to the settlement.

“The settlement is a win for us and (I) appreciate that it is a step in the right direction, but I’m disappointed in the lack of compassion from MSU and that their tone toward the survivors has not changed,” she said.

Michigan State’s role

Nassar admitted in court to using his position as a trusted medical doctor to sexually abuse young girls and women who came to him for medical care for about two decades. He was sentenced to more than 100 years in prison.

During a remarkable series of court hearings, dozens of women came forward to speak out against Nassar as well as the institutions that they said protected him, including Michigan State. Nassar was employed as a sports physician at the university from 1997 to 2016.

In 2014, for example, Amanda Thomashow reported Nassar’s abuse to Michigan State officials. The school ultimately sided with Nassar, concluding that his “pelvic floor” treatments were medically appropriate. Yet even as school officials allowed him to return to treating patients, the school’s Title IX coordinator called his methods a “liability” that exposed patients to unnecessary trauma.

The university has maintained that no official believed Nassar committed sexual abuse until newspaper reports were published in the summer of 2016. Any suggestion that the university engaged in a coverup is “simply false,” a school statement said.

Amid intense backlash, Michigan State President Lou Anna Simon resigned in January. John Engler, the former Michigan governor, was named the interim president by the board of trustees.

Michigan Attorney General Bill Schuette appointed a special prosecutor to investigate the university and find out who knew what, when and what they did about it.

The investigation led to the arrest of William Strampel, Nassar’s boss at the university’s College of Osteopathic Medicine, on charges of felony misconduct in office and misdemeanor criminal sexual conduct. Strampel has pleaded not guilty to the charges.

The special prosecutor, Bill Forsyth, issued a statement reacting to the settlement, saying the investigation is not done.

“It is very important to see resolution on the civil side, and I hope this provides some sense of relief and closure for the survivors,” Forsyth said. “That being said, my investigation is still open and ongoing.”

Rachael Denhollander, the first person to accuse Nassar of abuse publicly, said she was “very grateful” that a settlement was reached but that more work needed to be done.

“The litigation phase is over, but the fight for change and accountability, the fight to give survivors a voice and protect the next generation, has only just begun,” she said.

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