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Penn State Tops $20 Million Paying for Sandusky Fallout

by on November 12, 2012 1:23 PM

Keeping to its commitment to progress, Penn State released the most recent totals and as of Aug. 31, the university has spent $20,972,633 on legal fees, consultants and public relations firms since Jerry Sandusky was first indicted a year ago. 

According to Penn State, it takes about 40-45 days to record each month's fees. The university expects to be reimbursed under its insurance policy. Penn State's insurer filed a civil suit in Philadelphia contesting having to pay the fees. Penn State spokesman Dave La Torre said the university cannot discuss any details on the proceedings. 

Between July and August, fees for university legal services and defense saw the largest increase, $735,657.

Updated totals are as follows and can be found on the university's 'progress' website

Board of Trustees - Internal Investigation and Crisis Communications$11,730,265

  • Freeh Sporkin & Sullivan
  • Reed Smith LLP
  • Ketchum
  • Kekst and Company Inc.
  • Daniel J. Edelman, Inc.
  • Domus Inc
  • The Academy Group

University Legal Services/Defense$5,258,095

  • Saul Ewing
  • Duane Morris
  • Lanny J. Davis and Associates
  • Jenner & Block LLPML Strategies
  • Lee, Green & Reiter Inc.
  • McQuaide Blasko
  • Document Technologies, Inc.

Externally Initiated Investigations$202,079

  • Margolis & Healy
  • Lightfoot, Franklin, White LCC
  • Buchanan Ingersoll

Indemnified Persons' Legal Defense*: (Schultz, Curley, Spanier): $2,434,528

  • Farrell & Reisinger
  • Caroline M. Roberto
  • Vaira & Riley
  • Schnader Harrison, Segal & Lewis LLP
  • Klink & Co.
  • Corporate Security and Investigation
  • Bix-X-Bit, LLC
  • Gover, Perry, & Shore
  • Gentile Meinert Assoc
  • Fox Rothschild LLP
  • General Employees' Defense

Other Institutional Expenses$1,347,666

Total as of Aug. 31: $20,972,633

Former Penn State President Graham Spanier was charged on Wednesday, joining former athletic director Tim Curley and former vice president Gary Schultz in a new grand jury report released by the Attorney General's Office on Nov. 1. 

Curley, Schultz and Spanier are each charged with perjury, endangering the welfare of children, failure to report, criminal conspiracy and obstruction of justice in what Attorney General Linda Kelly called a 'conspiracy of silence'. Curley and Schultz were each arraigned on $50,000 unsecured bail and Spanier was arraigned on an unsecured bail of $125,000. A judge has yet to determine if their cases will be joined. 

Spanier was placed on immediate leave when he was charged and university officials have said Curley's contract will not be renewed. However, Penn State is required by its bylaws to pay for the men's legal fees. As stated on the university's website: 

"The Bylaws of Penn State state that "except as prohibited by law, every trustee and officer of the University shall be entitled as of right to be indemnified by the University against expenses (including counsel fees) and any liability (including judgments, fines, penalties, excise taxes and amounts paid in settlement) paid or incurred by such person in connection with any actual or threatened claim, action, suit or proceeding, civil, criminal, administrative, investigative or other." Article 5, Section 2."

Currently, civil suits filed by against Penn State by Sandusky's victims are on hold until the former top administrators' trials come to a close. 

Penn State asked Centre County court to grant a stay in former assistant coach Mike McQueary's $4 million lawsuit and a hearing is scheduled for Friday to determine whether it will be granted. 

Sandusky, 68, was sentenced to 30-60 years in prison for his sex crimes and will likely spend life behind bars. He was convicted on June 22 on 45 of 48 counts of sexually abusing 10 boys over a 15-year period and was moved to SCI Greene, a maximum security prison, to serve his life sentence.

Laura Nichols is a news reporter and @LC_Nichols on Twitter.
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