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MSU completes $500 million payment to Nassar survivors funds

Michigan State University sign
Emma Winowiecki
Michigan Radio

Michigan State University has completed its payment to the funds designated for survivors of Larry Nassar's sexual abuse, officials announced Tuesday.

A $500 million settlementwas reached between the university and survivors in May. $425 million will go into what is being called the Qualified Survivor Fund, and the other $75 million will be set aside in a litigation fund. A judge will now work directly with the approximately 500 survivors that have come forward to determine individual payments.

MSU Interim President John Engler said in a statement, “Making the payment on this settlement is an important step for the university, but it is not the only way MSU is accountable to those harmed. The entire campus is focused on implementing the improvements we’ve made in health care practices, reporting policies, campus-wide sexual assault education and prevention efforts and trauma-informed responses and treatment for survivors."

With the completion of this payment, MSU will end their Healing Assistance Fund, which was established last December to help survivors until the settlement could be paid. The $8.5 million still left in the fund will be redirected into the settlement payment.

The Healing Assistance Fund was suspended in July due to fraud concerns, and an MSU police investigation remains active, although the university is withdrawing its request for a new fund administrator. 

According to the university's press release, "Any recoveries from the Healing Assistance Fund fraud probe and future recoveries from university insurers will be used to pay off the bonds used for the settlement."

Emma is a communications specialist with the digital team at Michigan Radio. She works across all departments at Michigan Radio, with a hand in everything from digital marketing and fundraising to graphic design and website maintenance. She also produces the station's daily newsletter, The Michigan Radio Beat.
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