Freep alert:
https://www.freep.com/story/news/ed...r-survivors-fight-acknowledgement/2794436002/
Even though Engler declared this as "over", it doesn't look like this is going to be over anytime soon for MSU from the standpoint of paying $ out to victims. I doubt this is the last wave given that people process trauma over various timelines. There likely are thousands of Nassar victims out there who haven't yet come forward.
Some parts of the story:
The stories and patterns of Nassar's sexual abuse are the same — but this time they come from more than 160 survivors who are not part of the first wave of more than 330 women who sued Michigan State University and reached a settlement last year. The second wave is hoping for similar treatment, including a settlement that's the same.
MSU settled the first wave of suits for $500 million. Of that, $425 million was for those claimants, and $75 million was set aside for additional suits, as well as MSU's legal fees. A special administrator was set up to divide the settlement. Not everyone was guaranteed the same amount. But if it were divided equally, each filer would have gotten just over $1.2 million.
In contrast, if MSU uses only the remaining $75 million for the second wave, each claimant would get about $400,000, after taking out MSU's legal fees.
While MSU has settled a few of the suits in the second batch individually, the majority are grouped together. But the second wave of survivors never signed the original settlement, which means they aren't bound by its terms, their lawyers said. That could lead to more financial uncertainty for MSU, despite claims by former Interim President John Engler that all the costs related to lawsuits filed by Nassar survivors were known and fixed.
Mediation is expected to start later this month for the second batch of suits.
"I just like to remind (MSU) there's more of us. We have been through exactly what the girls (in the first wave) went through. We want to be treated the same."
Mediation talks with the first group of survivors led to the $500-million settlement, which MSU is paying through the issuance of a bond in early December. According to the bond paperwork, the university secured the loan by pledging the backing of the school's general fund. The bonds mature in 2033. The school has to pay between $24 million and $42 million a year on the bond principal.
The school has a negative rating from Moody's, a credit agency for business and governmental agencies. The poorer a credit rating or outlook, the more a school pays in interest.
In its most recent review, the rating agency noted there's more financial risk there for MSU from "ongoing potentially material financial and reputational risks from additional claims against its handling of sexual abuse by a former employee.
"The risks associated with these additional claims are not included in a completed $425-million settlement payment, but the university favorably does have $75 million in dedicated litigation reserves for these claims, partially mitigating additional financial risks. Additionally, university leadership and management face continued scrutiny from several investigations and inquiries, including from the Michigan State Attorney General's Office, which has already led to criminal charges filed against former MSU employees, including a prior president. Additional ongoing investigations and inquiries are being conducted by the U.S. Department of Education and Higher Learning Commission."
https://www.freep.com/story/news/ed...r-survivors-fight-acknowledgement/2794436002/
Even though Engler declared this as "over", it doesn't look like this is going to be over anytime soon for MSU from the standpoint of paying $ out to victims. I doubt this is the last wave given that people process trauma over various timelines. There likely are thousands of Nassar victims out there who haven't yet come forward.
Some parts of the story:
The stories and patterns of Nassar's sexual abuse are the same — but this time they come from more than 160 survivors who are not part of the first wave of more than 330 women who sued Michigan State University and reached a settlement last year. The second wave is hoping for similar treatment, including a settlement that's the same.
MSU settled the first wave of suits for $500 million. Of that, $425 million was for those claimants, and $75 million was set aside for additional suits, as well as MSU's legal fees. A special administrator was set up to divide the settlement. Not everyone was guaranteed the same amount. But if it were divided equally, each filer would have gotten just over $1.2 million.
In contrast, if MSU uses only the remaining $75 million for the second wave, each claimant would get about $400,000, after taking out MSU's legal fees.
While MSU has settled a few of the suits in the second batch individually, the majority are grouped together. But the second wave of survivors never signed the original settlement, which means they aren't bound by its terms, their lawyers said. That could lead to more financial uncertainty for MSU, despite claims by former Interim President John Engler that all the costs related to lawsuits filed by Nassar survivors were known and fixed.
Mediation is expected to start later this month for the second batch of suits.
"I just like to remind (MSU) there's more of us. We have been through exactly what the girls (in the first wave) went through. We want to be treated the same."
Mediation talks with the first group of survivors led to the $500-million settlement, which MSU is paying through the issuance of a bond in early December. According to the bond paperwork, the university secured the loan by pledging the backing of the school's general fund. The bonds mature in 2033. The school has to pay between $24 million and $42 million a year on the bond principal.
The school has a negative rating from Moody's, a credit agency for business and governmental agencies. The poorer a credit rating or outlook, the more a school pays in interest.
In its most recent review, the rating agency noted there's more financial risk there for MSU from "ongoing potentially material financial and reputational risks from additional claims against its handling of sexual abuse by a former employee.
"The risks associated with these additional claims are not included in a completed $425-million settlement payment, but the university favorably does have $75 million in dedicated litigation reserves for these claims, partially mitigating additional financial risks. Additionally, university leadership and management face continued scrutiny from several investigations and inquiries, including from the Michigan State Attorney General's Office, which has already led to criminal charges filed against former MSU employees, including a prior president. Additional ongoing investigations and inquiries are being conducted by the U.S. Department of Education and Higher Learning Commission."
