The University of Michigan agreed to pay $ 500 million to victims of sexual harassment by former sports doctor Larry Nassar. The lawyers of the institution has reached a pretrial agreement lawsuit, which was filed more than 300 women and girls.
The American media emphasize that we are talking about the record amount of compensation. However, the agreement can be considered a success of advocates of the University as detailed trial carried catastrophic reputational risks for educational institutions.
As already reported “FACTS”, Nassar was sentenced in January to 175 years in prison. His case has caused a scandal. Victims of harassment on the part of the doctor was the American gymnasts, including members of the national team of the USA gymnastics.
Having penalties for Nassar, the victims decided to file civil lawsuits against the University on the grounds that they have repeatedly reported to the University administration about the unacceptable behavior of a physician. However, their complaints went unanswered.
As reported by Michigan Live, now the main question is — how can the University take money for compensation. Their size ranges from $ 250 thousand to $ 2.5 million. Half a billion dollars is a huge amount. The budget of the University of Michigan for 2017-2018 is 1 billion 360 million dollars.
From the bottom of the 982 million is the tuition fee deposited by the students. Another 280 million are grants from the state. Finally, 98 million dollars — funds University funds. These are the three most significant source of replenishment of the budget of the University. To pull a lump sum of $ 500 million from the budget means to cause harm to students and teachers that have no relation to the Nassar does not have.