Penn State and its insurance company were mired in a major court battle over who would end up being responsible for the $90 million in settlement claims relating to the Jerry Sandusky case. But Friday in Philadelphia Court, the University and PMA (Pennsylvania Manufacturers Association Insurance) settled for undisclosed terms. Penn State reached settlements with 32 individuals who were abused by Sandusky.
The school expected insurance to cover the damages from the claims, and sued PMA in 2013 to receive payment. However, in May, Philadelphia County Court Judge Gary Glazer ruled that molestation and abuse exclusion in insurance policies from 1992-1999 bars the school from insurance coverage during those seven years, and according to court documents, a third of the claims against Sandusky come from that period.
Recently, unsealed court documents revealed claims of abuse by Sandusky dated all the way back to the 1970s, and that major administrators and Head Coach Joe Paterno were aware of abuses by Sandusky during the 1980s as well.