Michigan State University’s $500 Million Settlement in Larry Nassar Case: A Defining Moment in Institutional Accountability
In May 2018, Michigan State University (MSU) reached a historic $500 million settlement with more than 300 women and girls who had been sexually abused by Larry Nassar, the former university-employed doctor and once-celebrated USA Gymnastics physician. This landmark settlement, one of the largest in U.S. history involving sexual abuse, represented not only financial restitution but also a significant reckoning for institutional failure at one of the nation’s leading public universities.
The Scandal That Shook the Nation
Larry Nassar’s abuse spanned decades, during which he used his position of power and trust to prey on young female athletes under the guise of medical treatment. For years, complaints and concerns raised by survivors were ignored or dismissed by institutions, including MSU, USA Gymnastics, and the U.S. Olympic Committee. Nassar was finally brought to justice in 2018 when he was sentenced to up to 175 years in prison after hundreds of women gave impact statements detailing the abuse they had endured.
The courtroom testimonies were harrowing and revealed a pattern of abuse enabled by systemic failures. The sheer volume of victims—more than 300 in the civil suit, and over 500 who have come forward overall—exposed the depth of the crisis and ignited a national conversation about how institutions handle sexual misconduct allegations, particularly when the accused holds prestigious or powerful positions.
The Settlement: Details and Implications
The $500 million settlement was negotiated between MSU and lawyers representing 332 survivors. Of that amount, $425 million was earmarked for the current group of survivors, while the remaining $75 million was set aside to cover potential future claims.
For many of the women involved, the settlement was a recognition of the harm they suffered, though most emphasized that no amount of money could undo the trauma or give back the years lost to abuse and its aftermath. Still, the legal resolution was seen as a critical first step in holding MSU accountable for its role in failing to prevent Nassar’s crimes despite repeated warnings.
John Manly, one of the lead attorneys for the survivors, called the agreement “historic” but stressed that institutional reform was equally important. “This is about more than money. This is about making sure this never happens again,” he said.
Institutional Failures and Calls for Reform
The Nassar scandal revealed egregious institutional failures at MSU. Multiple reports indicate that MSU received complaints about Nassar’s behavior as early as the 1990s, yet he remained on staff until 2016. An internal investigation in 2014 cleared him of wrongdoing despite a patient’s clear allegations. The university’s inaction allowed Nassar to continue his abuse unchecked.
As public outrage mounted, MSU’s leadership came under intense scrutiny. University President Lou Anna K. Simon resigned in January 2018 amid criticism of her handling of the case. Shortly afterward, Athletic Director Mark Hollis also stepped down. Several MSU Board of Trustees members faced calls to resign as well.
In the wake of the settlement, the university committed to implementing new policies and oversight measures. These included greater transparency in handling complaints of sexual misconduct, mandatory reporting training, and structural changes to the Office of Institutional Equity. MSU also announced efforts to create a more survivor-centered approach to addressing sexual assault.
However, many survivors and advocacy groups insisted that meaningful reform required more than procedural changes—it required a cultural shift within institutions to prioritize the safety and voices of victims over reputation and liability.
Broader Impact and Cultural Reckoning
The MSU-Nassar case, along with the broader #MeToo movement, helped catalyze significant changes in how sexual abuse is addressed in sports, education, and beyond. USA Gymnastics faced its own reckoning, leading to the resignation of top officials and an overhaul of its leadership. The U.S. Olympic Committee launched investigations into systemic failures and implemented stricter safeguarding policies.
Moreover, the visibility of the survivors—many of whom, like Olympic gymnasts Aly Raisman, Simone Biles, and McKayla Maroney, spoke publicly—gave strength to others to come forward. Their bravery not only contributed to holding Nassar accountable but also challenged the culture of silence that often surrounds abuse by powerful individuals.
In 2021, the Department of Justice issued a scathing report faulting the FBI for mishandling the initial investigation into Nassar. This report further underscored the failures at multiple levels of authority that allowed the abuse to persist.
A Legacy of Pain, Strength, and Change
The $500 million settlement between Michigan State University and the survivors of Larry Nassar’s abuse stands as a milestone in the fight for justice against institutional negligence. It also serves as a warning to other organizations that ignoring or minimizing sexual abuse carries not only moral but substantial financial consequences.
For the survivors, the journey is far from over. While the settlement provided some closure, many have continued to advocate for systemic change and survivor support. Their resilience has become a powerful force for accountability, not just at MSU, but across the country.
Ultimately, the Nassar case will be remembered not only for the scale of the tragedy, but also for the strength of the women who came forward, the institutional failures it exposed, and the ongoing efforts to ensure that such atrocities are never repeated.