Penn State officials have reached an agreement with 26 victims of former longtime assistant coach Jerry Sandusky that will pay out nearly $60 million in damages.
According to a written statement released by the university and subsequent media reports, PSU will pay out $59.7 million. Of the 26 settlements, the university's statement said 23 have been finalized and the other three agreed to in principle.
"The Board of Trustees has had as one of its primary objectives to reach settlements in a way that is fair and respects the privacy of the individuals involved," said Keith Masser, chair of the Board of Trustees. "This is another important milestone in accomplishing that goal. I would like to thank the board's Legal and Compliance Committee, as well as its Legal Subcommittee for its leadership throughout this process."
"We hope this is another step forward in the healing process for those hurt by Mr. Sandusky, and another step forward for Penn State," said University President Rodney Erickson. "We cannot undo what has been done, but we can and must do everything possible to learn from this and ensure it never happens again at Penn State."
In all, Penn State received claims from 32 individuals who allege that they were victims of sex abuse at the hands of Sandusky. The settlement amounts will not be funded by student tuition, taxpayer funds or donations, according to officials. The University maintains various liability insurance policies, which the University believes cover the settlements and defense of claims brought against Penn State and its officers, employees and trustees. Expenses not covered by insurance are expected to be funded from interest revenues related to loans made by the University to its self-supporting units.
Over the past year, Penn State has instituted more than 115 changes related to safety, human resources, security, compliance and governance. Through self-imposed urgency, the Board of Trustees, administration and staff have brought sweeping reform and best practice processes to nearly every aspect of the University's governance and oversight. In doing so, the University considered the recommendations of multiple parties to determine the best course forward, including but not limited to the Pennsylvania Auditor General, Penn State University Faculty Senate and the Freeh Report recommendations.
"We have made great strides, but a great deal of work remains," Erickson said. "Our University is a better institution today as a result of the work and dedication of our trustees, administrators, faculty, staff and students."
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