Penn State sex abuse scandal costs billions

2017-01-07 18:24
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Harrisburg - Penn State's costs related to the Jerry Sandusky scandal are approaching a quarter-billion dollars and growing, five years after the former assistant football coach's arrest on child molestation charges.

The scandal's overall cost to the school has reached at least $237m, including a recent $12m verdict in the whistleblower and defamation case brought by former assistant coach Mike McQueary, whose testimony helped convict Sandusky in 2012.

The university has settled with 33 people over allegations they were sexually abused by Sandusky and has made total payments to them of $93m.

The total also covers the $48m "fine" levied by the NCAA that is funding anti-child-abuse efforts in Pennsylvania, $27m in lawyer fees to defend lawsuits, nearly $14m that includes the legal defence of three former administrators facing criminal charges for their handling of Sandusky complaints and $5.3m for crisis communications and other consultants.

The school's latest financial statement said insurers have covered $30m in costs, while other insurance claims remain pending.

The school also was hit in November with a $2.4m fine from a federal investigation, started immediately after Sandusky was arrested, that concluded the university repeatedly violated campus crime reporting requirements.

Sandusky is serving a 30- to 60-year sentence in Greene State Prison on a 45-count conviction for sexual abuse of 10 boys and he is currently pursuing an appeal in county court near State College.


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