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Penn State Expected to Pay Millions in Legal Fees for Sex Abuse Scandal

As expected, Penn State University has hired two law firms as well as two public relations firms to help handle its recent sex abuse scandal. Though no details have been released regarding the contracts between Penn State and the law firms, legal fees and costs are expected to be in the millions.

The University has retained former FBI Director Louis Freeh and his law firm of Freeh, Sporkin & Sullivan to lead the investigation into the school and how it dealt with claims that football coach Jerry Sandusky sexually abused eight boys. Since the investigation is ongoing and new details are revealed each day, no one knows just how long the matter will last or how much it will cost. For purposes of speculation, Reed Smith, the other retained law firm in the matter, charges an average hourly rate of $330 for its partners.

Those involved with the investigation also raise concern with the University’s ability to pay for the legal costs surrounding the allegations. Penn State has liability insurance and is insured for the actions of its directors and officers. However, if this isn’t enough the University may have to look elsewhere to pay for legal fees to defend against this suit.

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