Litigation Funding News: $500 Million Sexual Abuse Settlement with Michigan State University

The sexual abuse victims of Michigan State University team doctor Larry Nassar have reached a settlement with the university in the amount of $500 million. This settlement is designed to compensate the claimants for the trauma they experienced during their interactions with Nassar. However, payments are taking longer than expected, as is often the case, and several other defendants have not settled, lengthening the time it will take for the victims to receive closure and compensation.

Widespread Abuse of Children and College Students

The Nassar story is one of the most far-reaching and notable sports-related scandals in the history of the United States, involving a total of 332 victims of sexual abuse and crimes that spanned several decades, including sexual abuse of USA Gymnastics athletes over many years. Three hundred and thirty-two women filed a lawsuit against Michigan State University, alleging that the school failed to protect them from Nassar. Nassar had worked for Michigan State University since the 1990s. Several complaints were filed against Nassar during his time with the university, but the claimants, in this case, alleged that Michigan State University did not adequately investigate these complaints, let alone act on them.


According to Land of 10, the claimants consisted of women who alleged that they had been abused by Nasser when participating in sports at Holt High School, Twistars (a gymnastics club), and Michigan State University. Some plaintiffs allege that the abuse began when they were children and continued for years.

Before this case was settled, Larry Nassar had pled guilty to sexually abusing countless women and girls on the USA Olympic gymnastics team for many years. He received a sentence of up to 175 years in prison. Nassar is also serving a 60-year sentence for child pornography.

MSU agreed to compensate the sexual abuse victims who have come forward with a collective payment of $425 million and to set aside an additional $75 million for additional victims who bring claims against the university in the future. Unfortunately, in late July, the University halted payments to victims, and for now, the victims will have to wait even longer.

Litigation Funding Bridges The Gap

This court case resulted in a substantial payout for the claimants, in theory. Unfortunately, in many cases, even a high profile case like this one with clear and admitted wrongdoing, lawsuits take years before a settlement is reached; in this case, there are other defendants who have not settled with their accusers. And even when settlement occurs, payment can take a while. Lawsuit plaintiffs can have difficulty meeting expenses, or simply not receive the expected funds when they are expected. claimants don’t have to settle for less than they deserve or to wait too long for their funds if they are able to secure litigation funding.

Litigation funding provides financial support to cover your expenses when cases or payments take too long. If you are interested in litigation funding, call LawCash at 1(800) LAW-CASH today to learn more about your options or fill out our plaintiff funding application online.