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Penn State's Sandusky Scandal-Related Fees Top $41 Million, Including $12 Million NCAA Fine

by on March 11, 2013 3:12 PM

As of Dec. 31, picking up after the Jerry Sandusky scandal has cost Penn State $41,059,671 in legal fees, public relations work and consultant costs. That grand total also includes the $12 million fine paid to the NCAA -- so far. 

Penn State officials update the total costs associated with the scandal as they become available, generally about 40-45 days after the end of the month, per Penn State's 'Progress' website. 

The 'Progress' website says some of the costs and fees are to be reimbursed by Penn State's insurer. Last week, Penn State sued its insurer, the Pennsylvania Manufacturers' Association Insurance Company, for failing to pay claims brought against the university by Sandusky's victims. 

In December, the university payed its first of five $12 million installments – which will make up the $60 million fine agreed to by university -- as part of the sanctions imposed by the NCAA . That money is being deposited into an escrow fund. The $12 million installment and all subsequent fine  payments will not be distributed until a lawsuit, filed by Sen. Jake Corman (R-34), is settled. Corman's suit asks to keep all of the fine money within Pennsylvania.

Previously, the fine money was not included in the total costs associated with the scandal which reflects the significant numerical increase between November – which brought the total to $27,663,423 – and the more than $41 million total in December. 

Totals can also be found on Penn State's 'Progress' website and are as follows: 

  • NCAA Fine: $12,000,000

Freeh Sporkin & Sullivan/Pepper Hamilton LLP: $8,147,597

Independent Monitor: $1,072,968

  • DLA Piper, LLP

Board of Trustees - Legal Services, Consulting Services and Communications$5,395,981

  • Reed Smith LLP
  • Ketchum
  • Kekst and Company Inc.
  • Daniel J. Edelman, Inc.
  • Domus Inc
  • The Academy Group
  • TAI
  • KPMG
  • Guidepost Solutions

University Legal Services/Defense$7,661,566

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

Externally Initiated Investigations$480,090

  • Margolis & Healy
  • Lightfoot, Franklin, White LCC
  • Buchanan Ingersoll
  • Saul Ewing
  • Other

Indemnified Persons' Legal Defense*: (Schultz, Curley, Spanier): $4,431,486

  • Farrell & Reisinger
  • Caroline M. Roberto
  • Vaira & Riley
  • Schnader Harrison, Segal & Lewis LLP
  • Gover, Perry, & Shore
  • Gentile Meinert Assoc
  • Fox Rothschild LLP
  • General Indemnified Persons' Defense
  • Various Vendors

Other Institutional Expenses$1,842,527

Total as of Dec. 31, 2012: $41,059,671

Sandusky, 69, is serving a 30-60 year sentence in a single cell in SCI Greene, a maximum security prison about three hours away from State College. He was convicted in June on 45 of 48 counts in a child sexual abuse case.

Related coverage: 

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