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Michigan State reaches $500M settlement with victims of Larry Nassar

RENA LAVERTY / AFP / Getty

Michigan State has agreed to a $500-million settlement with 332 survivors of sexual abuse by Larry Nassar, the disgraced former gymnastics doctor.

Current claimants will be paid $425 million, while $75 million will be set aside in a trust fund to protect "any future claimants alleging sexual abuse by Nassar," MSU announced.

The settlement in principle was agreed to by the school's board of trustees on Tuesday, and applies only to Michigan State and MSU individuals sued in the litigation. Lawsuits against USA Gymnastics, the U.S. Olympic Committee, and Bela and Martha Karolyi are not addressed.

None of the parties in the settlement will be bound by confidentiality or non-disclosure agreements.

According to ESPN, the settlement "did not include provisions about policy or acknowledge the claims made against Michigan State."

"I'm very happy that we're done with litigation," said Rachael Denhollander, a former Michigan State gymnast who in fall 2016 became the first survivor to go public about Nassar's sexual abuse, per ESPN's Dan Murphy.

"I'm very grateful for the historic number that acknowledges some of the hardships that these women have suffered. I'm also very disappointed in a missed opportunity to create meaningful policy changes."

The lawsuits said Nassar sexually abused female patients over more than two decades. The 54-year-old is currently serving a 60-year federal prison sentence on child pornography charges. He was sentenced to up to 175 years in state prison for charges including criminal sexual conduct against minors.

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

In January, MSU president Lou Anna Simon resigned amid backlash over how the school handled its investigation of Nassar's sexual abuse.

Attorney for survivors John Manly added, "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."

Jamie White, a lawyer representing some victims, welcomed the settlement.

“I don’t think they can ever be made whole," he told the Detroit Free Press' David Jesse and Gina Kaufman, "but this is a step in the right direction."

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