Pennsylvania State University President Rodney Erickson says the university plans to settle with the victims of Jerry Sandusky “in the near future.”
During an interview at the headquarters of Bloomberg, Erickson says the “bulk of the funding” for settlements will come from insurance.
“That's obviously why we buy insurance,” Erickson says.
Penn State has “multiple stacks” of civil liability insurance as well as directors' and officers' liability insurance “to cover the defense of the university's executives, employees, trustees and so forth,” he says.
Erickson says Penn State could soon publicly announce a “process we hope will result in the settlement of ideally all—but hopefully many—of the civil cases.” Penn State has consulted outside counsel, he adds.
“Dr. Erickson was not suggesting that we were going to announce that the cases have been settled,” spokesman Dave La Torre tells PC360. “He was indicating that we are going to start the process.”
The university faces a handful of cases brought by victims of Sandusky, a former assistant football coach. More victims could also step forward and file suit.
Sandusky was convicted in June of sexually abusing 10 boys over more than a dozen years. Sandusky abused many of the boys in facilities on campus. He is scheduled to be sentenced Oct. 9.
Shortly after the verdict the university said it would be contacting victims to begin settlement talks some plaintiffs' attorneys have complained of limited to no contact with Penn State, according to reports.
“We certainly haven't forgotten about Mr. Sandusky's victims,” Erickson says. The university would like to set up a settlement process so that victims aren't “dragged through a long litigation process,” he adds.
Penn State is involved in litigation with its general liability insurer, Pennsylvania Manufacturers' Association Insurance Co, which has provided the coverage to the university since the 1950s. PMA says it has no duty to defend or indemnify the school.
PMA is being sued by Penn State for breach of contract.
La Torre says the court battle with PMA is ongoing.
Penn State and United Educators—reportedly the writer of the university's Educators Legal Liability coverage—are currently not waged in litigation.
The university also operates a captive insurer, Nittany Insurance.
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