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An alumni watchdog group, Penn Staters For Responsible Stewardship, had urged the board to table Friday's vote on the settlement issue until the criminal case against former school officials Tim Curley and Gary Schultz are resolved. They asked a judge this week to delay their Jan. 7 perjury trial stemming from the child abuse investigation into Sandusky.
The watchdog group said in a statement this week that it remained sympathetic with victims and the need for those responsible to "pay the price" for failing to protect them. But the group also said trustees should "not to act in haste, but rather to allow the judicial process to take its course before addressing possible victim settlement claims."
Asked if the board shared the concerns, Peetz only said "We decided that wasn't a super-relevant point."
The trustees didn't have to get involved with the settlements, Peetz said, but thought it was appropriate given the magnitude of the cases. The subcommittee could approve settlements without having to run it by the full board, though it will still remain in regular contact.
"As we said from the beginning, we wanted to make this a fair process that wasn't overly burdensome for the victims," Peetz said.
Also Friday, ratings agency Moody's Investors Service downgraded the university's long-term rating because of the expected financial costs from pending lawsuits related to the Sandusky scandal. It added that the university had moved forward by embracing reforms set forth by former FBI director Louis Freeh, who led Penn State's own investigation into the scandal, and said that the school's research, fundraising and enrollments remained strong.
Moody's action followed last week's announcement by Standard & Poor's that it had also revised Penn State's outlook to negative from stable citing the litigation over the Sandusky child sex abuse scandal. Penn State now has each agency's third-highest investment grade.
Peetz said the downgrade wasn't a "big deal," and might have an impact only if the school were to issue debt. "We're not planning on issuing debt."
[Associated
Press;
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