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Penn States settles with 26 Sandusky victims for $59.7M

Posted On: Oct. 28, 2013 12:00 AM CST

Penn States settles with 26 Sandusky victims for $59.7M

Pennsylvania State University has reached settlements totaling $59.7 million with 26 sexual abuse victims of former assistant football coach Gerald Sandusky, the school announced Monday.

Terms of the settlements — which have been reached “over the past few months” — include a release of all claims against Penn State and other parties and are subject to confidentiality agreements, the university said in a statement.

Of the 26 settlements, 23 are fully signed, with three agreed to in principle with final documentation expected within the next few weeks, according to the statement.

Penn State said it has received claims from 32 individuals alleging they were victims of Mr. Sandusky. Of those claims, some have been dismissed by the university as without merit, the statement said, while the university is involved in settlement discussions with those remaining.

The university said the settlements will not be funded by student tuitions, taxpayer funds or donations.

“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,” Monday's statement said. “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.”


Penn State has previously said that insurer Pennsylvania Manufacturers' Association Insurance Co., from which it purchased comprehensive general liability coverage, should pay the claims and is involved in legal action to force the Blue Bell, Pa.-based insurer to do so.

Mr. Sandusky, former defensive coordinator for Penn State's football team, received a 30- to 60-year sentence after being convicted in June 2012 of sexually molesting 10 boys.

In July, Penn State noted that it has moved to implement 118 of 119 recommendations presented in a report from former FBI Director Louis Freeh, who was commissioned by the university to study the Sandusky situation and identify ways Penn State could improve safety and governance.