O'Melveny's Shallman Interviewed by ESPN About Legal Fees Associated With Penn State Scandal

November 15, 2011

O'Melveny & Myers LLP white collar partner Dan Shallman is quoted in the November 15, 2011, ESPN.com article "Penn State's Long Road to Recovery," about the legal fees associated with the scandal. In the article, Shallman estimates that costs could reach US$100 million. The article says "Shallman said Penn State could easily spend $500,000 or more per criminal defendant (the school has said it will cover the legal expenses for former athletic director Tim Curley and university administrator Gary Schultz) unless a plea agreement or other pretrial dispositions of cases occur. Although Penn State might be obligated to cover legal fees because Curley and Schultz are charged with crimes related to their duties as Penn State employees, Shallman said the university likely has reserved the right to cut off fees or recoup its advances if the defendants are found guilty." The article continued by noting that "a committee has been formed by Penn State's board of trustees to investigate the matter, and the university will have to hire an outside law firm and a team of forensic examiners to interview witnesses and examine what is likely to be thousands of emails, phone records and other documents. Shallman estimates that the price tag for those legal fees could top $5 million. But the bulk of Penn State's legal costs likely would come from defending civil lawsuits against the university -- up to $20 million -- and possible damages that would have to be paid, approaching $100 million, Shallman said."  Shallman resides in O'Melveny's Los Angeles office.