Pennsylvania State University has settled its long-running legal fight with an insurer over claims stemming from the Jerry Sandusky sex abuse scandal. The battle dates to 2012, when insurer Pennsylvania Manufacturers’ Association Insurance Co. (PMA) filed a declaratory action suit seeking to limit exposure to potential claims. In 2013, Penn State responded with two lawsuits accusing the insurer of acting in bad faith by trying to evade the claims. All three of these suits were settled.
Penn State has faced a string of claims from victims of Sandusky, who is serving a 30- to 60-year prison sentence after being convicted on 45 counts of child molestation in June 2012, leading to a string of settlements. In October 2013 the school agreed to pay $60 million to 26 alleged victims. There was also a second round of settlements approved in April 2015. The settlement comes after several significant developments in the cases over the last seven months.
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