PSU costs in Sandusky case near $10 million
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Costs of the Jerry Sandusky child sex abuse case and related fallout are continuing to mount for Penn State University. A tally released Monday says the scandal's price is approaching $10 million.
The sum covers a five-month period from November, when the former assistant football coach was arrested, through March 31.
The costs reflect payments by the state's public flagship university for legal fees, consultants and public relations firms.
The university has said the money will not come from tuition, taxpayer money or donor gifts.
Monday's figures do not capture all costs related to the Sandusky case. For instance, Penn State has said it will not provide the settlement agreement with former Penn State president Graham Spanier, citing confidentiality language. Nor does the sum include the settlement agreement with late football coach Joe Paterno.
Penn State trustees fired Mr. Paterno and accepted Mr. Spanier's resignation Nov. 9 as the university faced mounting criticism for its failure for a decade to alert law enforcement to one alleged sexual assault by Mr. Sandusky on a boy in a campus shower.
Mr. Sandusky, 68, is charged with assaulting 10 boys, including a number on Penn State's campus, over a 15-year period. His trial is set to begin Monday.
Roughly two-thirds of the updated cost total, or $6,519,946, involves the internal investigation headed by the firm of former FBI director Louis Freeh, along with crisis communication expenses, according to Penn State data. Firms covered by the total include Freeh Group/Kekst Public Relations; Reed Smith/Ketchum Public Relations; Domus Inc.; and the Academy Group.
Penn State has paid another $1,793,487 for university legal services and defense. That sum includes payments to Saul Ewing; Duane Morris; Lanny J. Davis and Associates; Schnader Harrison Segal & Lewis LLP; Jenner & Block LLP; ML Strategies; Lee, Green & Reiter Inc.; and Klink & Co.
Externally initiated investigations account for another $49,788 and include payments to Margolis & Healy.
Penn State said it also has spent $543,079 in legal defense for Mr. Spanier, who is not charged with any crime, and for Tim Curley, who is on administrative leave as Penn State's athletic director, and Gary Schultz, retired as senior vice president of business and finance, both of whom are charged with one count each of perjury and failure to report.
The school listed other institutional expenses related to the scandal at $724,623.
Penn State said any scandal-related expenses not covered by insurance will be paid out of a pool of interest income from internal loans. That pool "is in excess of $10 million," Penn State president Rodney Erickson told the Pittsburgh Post-Gazette on Friday.
First Published June 5, 2012 12:00 am