Dive Brief:
- Michigan State University named Samuel Stanley Jr., the president of Stony Brook University, as its president, according to The Detroit News.
- For the past decade, Stanley, a medical doctor and biomedical researcher, has been at the helm of Stony Brook, in New York, where he created 240 faculty positions and was in charge of the largest fundraiser in the university's history.
- He will succeed Satish Udpa, who became Michigan State's acting president in January after his predecessor was forced out for making insensitive comments toward sexual abuse victims.
Dive Insight:
Stanley will have his work cut out for him to restore Michigan State's reputation in the wake of revelations that former sports doctor Larry Nassar abused his position to sexually assault hundreds of women over his decades-long career.
The university made several missteps in its response to the scandal. Among them, John Engler, the former interim president, resigned after describing some of Nassar's victims as "still enjoying" the "spotlight," among other controversial public comments.
Michigan State has also been accused of stonewalling an investigation into how it handled allegations against Nassar, which date back to 1990s.
Several former Michigan State administrators are dealing with legal repercussions from the scandal. Ex-Michigan State President Lou Anna Simon resigned after more than 150 women testified about Nassar's abuse at his sentencing. Now, she faces charges of lying to police about her knowledge of the abuses.
Former Michigan State gymnastics coach Kathie Klages and former dean William Strampel are also facing charges stemming from an alleged coverup. Strampel, Nassar's former boss, also faces two sex crime charges.
Michigan State is paying all three former officials' legal bills related to the Nassar case, the Lansing State Journal reported. As of late January, Simon's defense cost close to $20 million.
The university has also agreed to settle with around 300 of Nassar's victims for $500 million. And there may be more legal costs ahead; more than 160 women have since come forward with lawsuits, according to the Detroit Free Press.
As Michigan State's bills swell, there have been questions about how the university will pay for the full cost of the scandal. The college lost direct liability insurance over claims of sexual misconduct and has since set up a captive insurance company, which will cover "employee benefits, medical malpractice and other operational liability," The Wall Street Journal reported in March. However, the insurance company does not explicitly cover sexual misconduct claims.
Last June, the university's board voted to issue bonds to cover some of the settlement. The institution is also in mediation with several insurance companies in the hopes of gaining up to $300 million.
