Dec. 1 (Bloomberg) -- The Second Mile, a charity run by former Pennsylvania State University football coach Jerry Sandusky, settled a lawsuit filed by an alleged sexual abuse victim seeking to freeze its assets, according to a lawyer.
The charity agreed to obtain court approval prior to transferring assets or closing down and provide notice to the plaintiff before any distribution of funds, attorney Ben Andreozzi said today in an e-mailed statement. Andreozzi represents a man identified as John Doe #4 in the complaint, filed Nov. 23 in Pennsylvania state court in Philadelphia.
Sandusky, 67, was charged by state prosecutors Nov. 5 with 40 counts related to alleged molestation of eight boys from 1994 to 2009. Prosecutors charged that Sandusky, who founded Second Mile in 1977, used the charity to find his victims. He has denied any wrongdoing.
“Our goal in filing this lawsuit was to protect the interests of our clients and other victims,” Andreozzi said. “We intend to initiate a civil lawsuit seeking damages from the organizations and individuals responsible for the sexual assaults upon our clients.”
The organization, which serves children with physical, emotional and academic needs, saw its assets more than triple from 2002 through 2009. Net assets were estimated at $7.9 million as of Nov. 24, according to court papers.
Howard Rosenthal, an attorney for the charity, didn’t immediately return a call seeking comment.
In court papers filed Nov. 28, the charity argued that the complaint lacked any factual basis and should be dismissed or transferred to state court in State College, where Second Mile is located.
Second Mile said earlier this month that it’s considering restructuring, transferring some programs or shutting down. The charity’s former president, Jack Raykovitz, resigned Nov. 14 after a grand jury report said foundation officials were aware of Sandusky’s alleged contact with boys in Penn State football showers as early as 1998.
A new alleged victim sued the charity, Sandusky and Penn State yesterday in state court in Philadelphia, alleging more than 100 instances of abuse between 1992 and 1996. That victim, identified as John Doe A, claimed the charity and the university were negligent in failing to protect children from sexual abuse.
The cases are John Doe #4 v. The Second Mile, 11112384; John Doe A v. The Second Mile, 111102968, Court of Common Pleas Philadelphia County (Philadelphia).
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