Insurers, Michigan State University In Mediation Over Nassar Claims Settlement

Nearly 18 months after Michigan State University sued about a dozen insurance companies in an effort to get them to pay a record-setting settlement with survivors of Larry Nassar’s sexual assault, the case remains on hold.

The university and the companies are engaged in mediation talks, but legal action could restart soon if there’s no further movement.

It’s high stakes for the university. If it can’t get the companies to pay, then the school will have to pay back the hundreds of millions of dollars it borrowed to make a $500 million settlement to the first round of Nassar survivors.

The money needed could continue to climb — more lawsuits are pending against MSU.

The suit was filed in July 2018. Michigan State is alleging the companies broke contracts when each one refused to pay, despite MSU paying premiums over the years for coverage.