Jerry Sandusky scandal costs rise to $45.8 million for Penn State

mdawson@centredaily.comJune 11, 2013 

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    By the numbers: a look at the costs to Penn State for the Sandusky scandal

    $12 million: NCAA fine $9,724,432: Legal and defense services for the university $8,159,083: Freeh Sporkin & Sullivan/Pepper Hamilton LLP, law firm of former FBI director Louis Freeh $,6200,980: legal fees, consulting and communications services for the university’s Board of Trustees $1,495,182: DLA Piper, law firm of former U.S. Sen. George Mitchell, who is serving as athletics integrity monitor for NCAA $5,802,541: defense bills for university officers $1,884,531: other institutional expenses $615,155: externally initiated investigations, such as investigation by U.S. Department of Education

    Total: $45,881,904

The Jerry Sandusky scandal has cost Penn State now almost $46 million in legal fees, crisis public relations and other expenses, according to figures the university released Tuesday.

Penn State said the latest tally of $45,881,904 represents work by more than three dozen firms who invoiced the university since March 31.

The university has been providing monthly updates on the costs, and the latest report shows work worth $1.4 million was done in the month of March. As of the end of February, the bill was $44.4 million.

The largest chunk of the $1.4 million was $650,907 for legal fees the university is obligated to pay for administrators and officers, such as former president Graham Spanier, former athletic director Tim Curley and retired vice president Gary Schultz, who are facing obstruction of justice and related charges. The university does not provide a breakdown of the bill from each individual firm.

To date, Penn State has spent $5.8 million for the defense of its former employees.

The university was billed another $480,842 from law firms that provide it legal or defense services, such as McQuaide Blasko, Duane Morris and Feinberg Rozen. That total now stands at $9.7 million.

The university was billed slightly more than $200,000 for the firms retained by the board of trustees for legal work or public relations.

Penn State President Rodney Erickson has said the university has insurance policies that will cover some of the costs, but others, such as the crisis communications, will be paid out of pocket.

Another $12 million payment later this year toward the $60 million fine levied by the NCAA will make the scandal costs balloon. The amount paid to the former employees’ lawyers will only increase, too, as the their lawyers have been litigating a number of issues before the case has even gotten to a preliminary hearing.

The Feinberg Rozen firm was retained to negotiate settlements with men claiming they were abused by Sandusky, and the university has said it will release the total settlement amount.

On Monday, the firm’s Kenneth Feinberg said the negotiations with 30 individuals were ongoing without a resolution.

Mike Dawson can be reached at 231-4616. Follow him on Twitter @MikeDawsonCDT.

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