Bonds, not tuition, to fund MSU's $500 million settlement with Nassar survivors
MSU will use general revenue bonds to fund a $500 million litigation settlement between the university and survivors of ex-MSU and USA Gymnastics doctor Larry Nassar's sexual abuse.
The money won't be drawn from student tuition or state funding, according to Board of Trustees member Melanie Foster. Foster is chairperson of the board's finance committee.
University officials believe bonding "is the quickest process to establish the settlement fund with least amount of immediate impact on MSU programs and services," according to a press release. The release also said MSU is currently in negotiations with insurance providers to be reimbursed.
The use of bonds to pay for the settlement was unanimously approved by the Board of Trustees at their June 22 meeting. Once the settlement is approved by a judge, payments can be issued.
The lawsuit settlement was first announced in May after two days of closed-door mediations between the university's lawyers and the survivors' lawyers.