Larry Nassar has been accused of molesting hundreds of individuals. | Rena Laverty/AFP/Getty Images Michigan State unveils $500M settlement with Nassar victims

Michigan State University announced Wednesday that it has agreed to pay out $500 million to settle hundreds of claims filed against Larry Nassar, the disgraced university doctor who treated Olympic gymnasts.

Under the terms of agreement, which still must be finalized, $425 million will go to 332 individuals, while $75 million will be set aside in a trust fund to protect any future claimants, the university said.


The terms agreed to in principle top the more than $109 million that Penn State University paid to settle claims by at least 35 people that assistant football coach Jerry Sandusky had sexually abused boys, according to the Associated Press.

"Michigan State is pleased that we have been able to agree in principle on a settlement that is fair to the survivors of Nassar's crimes,” Robert Young, the special counsel to the university, said in a statement. “We appreciate the hard work both sides put into the mediation, and the efforts of the mediator, which achieved a result that is responsible and equitable."

In turn, John Manly, an attorney for the victims, praised what he called a "historic settlement."

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"It is the sincere hope of all of the survivors that the legacy of this settlement will be far-reaching institutional reform that will end the threat of sexual assault in sports, schools and throughout our society," Manly said.

Michigan State admitted no wrongdoing in the statement announcing the settlement. The settlement applies only to Michigan State University and university officials sued in litigation and does not address other suits, such as claims against USA Gymnastics.

Nassar was sentenced in January to 40 to 175 years in prison after pleading guilty to seven counts of criminal sexual conduct while also admitting he used his medical position to assault girls under the guise of medical treatment.

