Michigan University, where serial sex abuser Larry Nassar practised medicine, has announced it has agreed to a $500m settlement with hundreds of former victims.

The former USA Gymnastics doctor, who also served at an on-campus clinic at Michigan State, earlier this year received two prison sentences of up to 125 years and up to 175 years after hundreds of young women testified about decades of sexual abuse at his hands.

The deal calls for the university to pay $425m to the 332 victims represented in the current litigation, with another $75m set aside in a trust fund, which could go to future plaintiffs who allege they were abused by Nassar.

The agreement with attorneys representing the survivors was a "global settlement," Michigan State University said.

It said it resolved claims against individuals that were employed by the faculty and implicated in the wide-ranging scandal.

It did not resolve claims against USA Gymnastics, the US Olympic Committee, star gymnastics coaches Bela and Marta Karolyi, and others.

Neither did it end a criminal inquiry of the university's actions with regard to Nassar's behaviour.

"It is the sincere hope of all of the survivors that the legacy of this settlement will be far reaching institutional reform that will end the threat of sexual assault in sports, schools and throughout our society," attorney John Manly, who represents many of the victims, said in a statement.


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The scandal is the biggest in US Olympic history and has had far-reaching effects - ending careers at USA Gymnastics, the Olympic committee and at Michigan State University.

The criminal investigation into the university's role is being conducted by special counsel Bill Forsyth, on behalf of the Midwestern state's top law enforcement office.

"It is very important to see resolution on the civil side, and I hope this provides some sense of relief and closure for the survivors. That being said, my investigation is still open and ongoing," Mr Forsyth said.

The criminal inquiry has yielded criminal charges against William Strampel, the former dean of the medical college where Nassar practiced medicine.

Mr Strampel faces several charges, including criminal sexual conduct and willful neglect of duty.