By Mark Shade
STATE COLLEGE, Pa (Reuters) - The Second Mile charity has agreed to freeze its assets to settle a lawsuit filed by a man identified only as Victim 4 in a sexual abuse indictment against a former Penn State football coach, the man's lawyers said on Friday.
The Second Mile charity to help troubled children was founded by assistant coach Jerry Sandusky, who is charged with molesting eight men when they were juveniles in a scandal that rocked the multimillion dollar world of college athletics.
The man identified as Victim 4 in a grand jury report filed the lawsuit last month in state court in Philadelphia to preserve Second Mile's assets. His lawyers, Ben Andreozzi and Jeffrey Fritz, said the charity has settled that suit.
They also said in a statement that the man planned to eventually file another lawsuit seeking damages "from the organizations and individuals responsible for the sexual assaults upon our clients."
Those clients include other accusers who have contacted the lawyers since the grand jury indicted Sandusky, a spokeswoman for the law firm said, declining further comment.
The Second Mile charity, through which Sandusky allegedly met his victims, has said it was considering three options for its future, one of which was closing. It has told potential donors to give to another charity.
In settling the lawsuit, the Second Mile agreed to obtain court approval prior to the transfer of assets or closure, and to provide notice to the man. It also agreed to allow the man "to be heard by the court regarding the interest of victims and the distribution of assets."
The Second Mile said of the deal: "The agreement reiterates the Second Mile's existing legal obligations; it does not include a finding of liability."
Separately, an attorney for another accuser rejected comments by Sandusky's lawyer, Joe Amendola, this week that Sandusky was innocent because some of his accusers had maintained relationships with him.
Amendola told the Harrisburg Patriot-News daily that Victims 2 and 6 of the grand jury report had dined with Sandusky and his wife in summer 2011.
REPORTED ON DETAILS OF DINNER
Howard Janet, a Baltimore lawyer who represents Victim 6, said the July dinner was initiated after Sandusky knew he was under investigation by a grand jury.
Victim 6 also told police about the invitation. He declined a request to wear an electronic listening device but reported details afterward to authorities, Janet said in a statement.
"Today, we call on Sandusky and his lawyer to stop the manipulation and mental abuse of these former Second Mile children and Penn State devotees so that this matter may be resolved quickly and the healing may get underway," he said.
Penn State's Board of Trustees also formally dismissed legendary football coach Joe Paterno and President Graham Spanier, finalizing actions taken last month after Sandusky's indictment on 40 criminal counts.
The brief meeting of trustees made official the November 9 firings of Spanier and Paterno in the scandal. Paterno was head coach of the Nittany Lions, a college football powerhouse, for 46 years.
"I think today we wanted to make sure we crossed our 't's and dotted our 'i's," university spokesman Bill Mahon said.
Sandusky, a former defensive coordinator, was accused of sexually assaulting young boys over a 15-year period. If convicted, he faces life in prison. He has maintained his innocence.
A ninth accuser came forward this week to file a lawsuit against Sandusky, Penn State and The Second Mile.
The executive committee voted unanimously on the resolutions severing Paterno and Spanier from their positions, Mahon said. It also voted unanimously on a resolution to replace Spanier with Rodney Erickson.
Spokeswoman Lisa Powers declined to comment on such details of Paterno and Spanier's dismissals as access to university facilities and financial questions. She said they were either being discussed or subject to confidentiality clauses.
Paterno was the highest-paid employee at Penn State in 2009, making $1.02 million , according to a university federal filing this year. Spanier was the fifth-highest paid employee at $814,000.
Although technically fired, Spanier still holds a tenured position with the university. Mahon said he remains eligible to go on a one-year sabbatical and return to teach at Penn State following a hiatus.
Mahon could not say for certain if the same provision worked for Paterno.
(Additional reporting by Dave Warner; Editing by Ellen Wulfhorst, Jerry Norton, Barbara Goldberg, Greg McCune and Cynthia Johnston)