MSU to payout Nassar survivors based on seriousness, length of abuse

Hundreds of women survived sexual abused by Larry Nassar. Now they'll be splitting $500 million after Michigan State University settled with them. 

Kaylee Lorincz was 11 when she was first abused by Nassar - it would continue for another five years. She said in April that the university offered her $250,000 to settle. She passed.

A month later, the 332 survivors now have an agreement to settle with MSU for $500 million. The question now is how will it be done?

"There's going to be an evaluation of each individual claim based on factors that none of want to talk about, or think about," attorney Ven Johnson said. 

The school will, effectively, use a point system - based on the level of abuse, how long it went on, and when.

And I warn you, it's unfortunately graphic.  

"The abuse started at my first appointment when I was 11. The abuse got much was at that third appointment after my 13th birthday where the vaginal penetration had started and it just got worse and worse," Lorincz said.

The graphic descriptions are reality for the victims. An independent lawyer - called an allocator - will devise the point system. Johnson explains how they'll decide the system.

"Were they penetrated? If they were, how often were they penetrated? If they didn't have penetration but there was touching on the outside of clothes? They're going to be talking about things that none of us want to imagine," Johnson said.

So how will MSU pay the $500 million?

"That's not our problem. It's up to Michigan State how they get the money and we've always taken that position," Tom Waun, an attorney representing other victims, said. 

Statements indicate that MSU has $1.1 billion in reserve money. The college could borrow funds, although it's bond rating recently has been lowered. MSU is aggressively pursuing insurance companies to pay. 

In a statement released Thursday, interim president Engler stated that all of MSU's insurance carriers participated in the mediation and that we expect all of them to fulfill their contractual obligations.

"You should be aware that all of MSU's insurance carriers participated in the mediation and that we expect all of them to fulfill their contractual obligations," the statement said.

"I don't care about the money. I don't care - if I got nothing, that's fine with me too. However the third-party decides to divided up is fine with me," Lorincz said.

She said she just wants real change at MSU and an apology. She also wants safety procedures in place place so it never happens again.

Lawyers will get their standard 1/3 fee off the top. If everything goes according to schedule, victims could see money in about six months.