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Penn State's Fees Nearly Doubled in Three Months, Reaching $14.4 Million Through May

by on August 04, 2012 7:11 AM

As of May 31, dealing with the Jerry Sandusky child sex abuse scandal and its subsequent fallout has cost Penn State $14,494,970.

Overall, costs nearly doubled in the three months since reaching $7.5 million in February.

Noted on Penn State's website – set up to promote transparency and accountability among university officials – it generally takes 40-45 days for Penn State officials to receive all of the invoices for a given month.

The total breakdown of costs is as follows:

Internal Investigation and Crisis Communications: $8,848,608

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

University Legal Services/Defense: $3,369,709

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

Externally Initiated Investigations: $56,172

  • Margolis & Healy

Officers Legal Defense (Schultz, Curley, Spanier): $1,344,091

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

Other Institutional Expenses: $876,390

Total as of May 31, 2012: $14,494,970

The university said some of the fees and costs are subject to reimbursement via insurance. However, the Pennsylvania Manufacturer's Association, Penn State's insurer, has filed a suit against the university in an attempt to deny coverage.

The Pennsylvania Manufacturer's Association said Penn State did not sufficiently warn it about potential liability claims and civil suits that could result from the scandal.

Related coverage: 

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