Asumag 2303 Pennstate

Sandusky scandal has cost Penn State at least $237 million

Jan. 9, 2017
Former assistant football coach was convicted in 2012 of multiple counts of child molestation.

Penn State's costs related to the Jerry Sandusky sexual abuse scandal have reached at least $237 million.

The Associated Press reports that the school's latest financial statement state that insurers have covered $30 million in costs, while other insurance claims remain pending. Penn State says donations, student tuition, and taxpayer funds are not being used to pay uninsured costs, including legal expenses. Instead, the school is relying on interest revenue from university loans.

Sandusky, who was a longtime assistant football coach at the university, was convicted in 2012 of molesting boys in a locker room at Penn State over many years, during and after the time he was employed as a coach. He was sentenced to serve 60 years in prison.

The $237 million figure includes a recent $12 million verdict in a whistleblower and defamation case brought by former assistant coach Mike McQueary, whose testimony helped convict Sandusky.

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

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

The school also was hit in November with a $2.4 million fine from from the federal government after an investigation concluded that the university repeatedly violated requirements for reporting crimes on campus.

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