May 16, 2018, 12:58 PM ET

MSU agrees to pay gymnastics doctor Larry Nassar's accusers $500 million in settlement

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Michigan State University has agreed to pay the alleged victims of former gymnastics doctor Larry Nassar $500 million, according to a group of lawyers representing the 332 people who accused him of sexual abuse.

Of the total, $425 million will go to current claimants, meaning the 332 people being represented by the lawyers.

The remaining $75 million will be set aside in a trust fund in case there are any future claimants who come forward alleging abuse by Nassar.

"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," attorney John Manley said in the news release announcing the settlement today.

PHOTO: Victim and former gymnast Aly Raisman appears before speaking at the sentencing hearing for Larry Nassar, a former team USA Gymnastics doctor who pleaded guilty in November 2017 to sexual assault charges, in Lansing, Mich., Jan. 19, 2018.Brendan McDermid/Reuters
Victim and former gymnast Aly Raisman appears before speaking at the sentencing hearing for Larry Nassar, a former team USA Gymnastics doctor who pleaded guilty in November 2017 to sexual assault charges, in Lansing, Mich., Jan. 19, 2018.

The Michigan State University Board of Trustees signed off on the settlement during a conference call Tuesday night.

The settlement only applies to cases brought against Michigan State University and individuals associated with the school. There are other lawsuits that have been filed against a number of others – such as the U.S. Olympic Committee, famed gymnastics coaches Bela and Martha Karolyi -- that are not involved with this settlement and will be progressing in their respective cases.

Robert Young, who is serving as special counsel to MSU, said the school "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.

PHOTO: Former Michigan State University and USA Gymnastics doctor Larry Nassar listens during the sentencing phase in Eaton, County Circuit Court on Jan. 31, 2018 in Charlotte, Mich.Jeff Kowalsky/AFP/Getty Images
Former Michigan State University and USA Gymnastics doctor Larry Nassar listens during the sentencing phase in Eaton, County Circuit Court on Jan. 31, 2018 in Charlotte, Mich.

Michigan Attorney General Bill Schuette released a statement saying he is “pleased” that the settlement has been approved.

“This is about justice for the survivors; each of the women who came forward deserve justice," Schuette said. "Those who spoke at the many days of sentencing remain in my thoughts every day, and their strength is an inspiration to us all."

Nassar, who served as the longtime doctor to the U.S. Olympic gymnastics team, was sentenced in January to up to 175 years in prison in connection to several victims.

Nassar faced charges on seven counts of criminal sexual misconduct in the first degree, to which he pleaded guilty to in November.

ABC News' Rachel Katz contributed to this story.

News - MSU agrees to pay gymnastics doctor Larry Nassar's accusers $500 million in settlement

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  • Forward forward

    It could be worse. If this was Penn State the alumni would want to put up a statue honoring Nassar.

  • YouMayBanMeButYouCan'tBanIdeas

    I could never understand how big money is supposed to set things right in such situations, especially when it is coming out of someone else's coffers. Is money really going to make these women feel better about the abuse they suffered at the hands of a perverted individual?

  • gs12

    We use the term alleged way to often. There was a trial. Guilty. There is a settlement . Guilty.

  • Maybe, Maybe Not

    Well, here's the thing when you make a public not-for-profit institution like a state university pay for something like this. Such institutions are fictitious persons only. It's not like "MSU" is this big, evil bad actor that you can "personally" punish for the wrongdoing. No, it is comprised of thousands of stakeholders, including faculty, students, MIchigan taxpayers, and local businesses that depend on the university for their survival. And all but a few of these stakeholders are innocent of any wrongdoing. Yet, who bears the brunt of the punishment when "MSU" is punished? That's right, all those innocent stakeholders.

    To me, this is not good justice.

    It sounds good, until you realize who you are really punishing.

  • TheTroll

    Half a billion dollars. That is a lot of money. At the same time, that sum in no way heals any of the pain caused. Nassar had help and those persons need a change of garb with stripes and a new address with bars.

  • snake

    MSU is getting off easy with this settlement. Just as at Penn State & Jerry Sandusky, this abhorrent behavior was ignored and not reported by dozens of people who could have stopped it years ago but instead looked the other way" to protect the reputation of MSU".

  • j penske

    So that means each claimant will get about $1 after the lawyers get their cut.

  • pbgd

    Nice that MSU pays the victims 500 million, none of which come from the culprit's pocket. But as a long-time donor to the university, I care for what purpose my money is used.

  • Rubber Banned

    I can't believe MSU has 500 million liquid to pay this out. No wonder college is so expensive.

  • Zaff

    Any of you go-getter career climbers out there would be wise to make a trip to the penitentiary and visit this guy to learn his craft. He was apparently a grandmaster as making himself invaluable to his employers despite being a worthless predatory creep, keeping his position through 300+ victims and complaints. He literally had to be dragged off in chains to prison before the university finally decided to fire their pedophile doctor. People get fired from Target if they answer their personal phone while speaking to a customer. Your employer will never love you as much as this university loved their pedophile doctor. Think about that.

  • ranknfile

    A Million dollars has a way of inducing amnesia.