Michigan State University reached a $500 million settlement with more than 300 victims of former college doctor Larry Nassar, who sexually abused hundreds of women. The settlement will pay out $425 million to victims and put $75 million into a trust fund set up for any possible future victims. The settlement reached only applies to Michigan State, and not others mentioned in the suit. These include USA Gymnastics, the USOC, and USA gymnastics coaches Bela and Martha Karolyi. According to ESPN, the settlement was agreed upon by MSU’s board of trustees Tuesday night.

Largest settlement in American university history

The $500 million settlement is largest in history when it comes to a sexual abuse case involving any university.

The settlement was reported to be five times the amount paid out by Penn State stemming from the Jerry Sandusky abuse scandal. Penn State's settlement ended up being $109 million, and MSU's settlement ended up being $500 million.

Negotiations took place between MSU and lawyers. The settlement finally puts litigation behind the university. The first victim, Rachel Denhollander, publicly said she was happy that the victims were finished with litigation, but was bothered that there were no new policy changes.

Settlement reached because brave victims spoke out

According to the Washington Times, the settlement came about because of victims speaking out and coming forward. Claims of sexual abuse at the hands of Larry Nassar were filed as early as 1997, but officials who knew of the abuse failed to properly report it.

The former team doctor, Larry Nassar, was sentenced to 175 years in prison for criminal sexual misconduct. The suit also names USA Gymnastics [VIDEO], the USOC, and the local gym Twistars. Michigan State officials are paying the settlement out of pocket and are expected to sue their insurance company to get the money back. Current Acting College President John Engler sent out a letter calling the settlement a key step in the healing process. After the trial, MSU cut ties with former school athletic director Mark Hollis and president Lou Ann Simon. Negotiations with USAG, USOC, and Twistars do not have a start date.

While MSU is out of the line of fire, Congressional investigations are still ongoing and law enforcement investigations are being conducted in Michigan and Texas. The Karolyis continue to deny that they knew of the abuse taking place at their training facility.