Michigan St. settles with Nassar victims for $500M

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The former doctor was sentenced to 40 to 175 years in prison.

Nassar, who pleaded guilty to molesting athletes during treatment when he was employed by MSU and USA Gymnastics, was sacked from the university in September 2016. These defendants include "USA Gymnastics; the U.S. Olympic Committee; Twistars, a local gym where Nassar saw patients on a weekly basis; and specific individuals at some of those institutions".

Newsy's partners at WXYZ report $425 million will be paid now to the more than 300 survivors who've filed claims. About $75 million will be withheld for two years in case future lawsuits are filed over Nassar.

While Wednesday's settlement will remove Michigan State from Nassar-related litigation, the fallout over his crimes is likely not yet over.

There will be no confidentially agreements or nondisclosure agreements attached to the settlement, which was agreed to by the MSU Board of Trustees during a Tuesday night conference call.

MSU also launched a $10 million fund to support Nassar's victims abused at the school's health clinic or any MSU student-athletes he abused. The school had insisted that no one covered up assaults, although Nassar's boss, former medical school dean William Strampel, was later charged with failing to properly supervise him and committing his own sexual misconduct.

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Former gymnast Rachael Denhollander was the first woman to come forward publicly with accusations of Nassar, with co-accuser Jamie Dantzscher, a 2000 Olympic bronze medalist, disclosing her identity months later.

USA Gymnastics, the United States Olympic Committee and Twistars gymnastics club, located in MI, are also named in the lawsuit, according to Jamie White, who represents 46 survivors.

The MSU board issued a separate statement in which it apologized to the victims and their families, while also acknowledging the "need for change on our campus and in our community around sexual assault awareness and prevention". More that 150 women spoke at Nassar's sentencing hearing, alleging that he had abused them while claiming to be providing medical treatment.

According to ESPN, an allocator will determine how much each person will receive. It's also unclear where the money will come from. Olympic gold medal winners Aly Raisman, Jordyn Wieber, McKayla Maroney, and Gabby Douglas are among his accusers, per NBC. Some gymnasts said nothing was done to stop it after they complained.

For the sake of comparison, Penn State University paid out $109 million to 35 of Jerry Sandusky's victims, which is approximately 2.5 times more money per victim than MSU's Nassar settlement.

Lou Anna Simon resigned as school president and athletic director Mark Hollis announced his retirement earlier this year as well. He had an worldwide reputation and worked at the same time for USA Gymnastics, which trains Olympians.