The University of California is expected to sell bonds of which a portion will be used to help finance settlement payments to victims of a university doctor for alleged sexual assault.The school is slated to issue $3 billion of medical center pooled revenue bonds next week, through two series, $1.3 billion of tax-exempt bonds and $1.7 billion of taxable securities. A portion of the taxable series will be used to help fund the more than $700 million of expected settlement claims to victims of James Heaps, a former UCLA Health gynecologic oncologist for alleged sexual misconduct during exams, according to preliminary bond documents.Though the University is insured, “the combined settlements will exhaust available insurance coverage and efforts are underway to evaluate options to fund the settlements,” the documents say. To date, all settlements related to Heaps exceed $330 million, while the University expects the cumulative settlement amount to exceed $700 million, according to bond documents. “It is expected that a portion of the 2022 bonds will be used to fund a portion of the settlements of the Heaps matters.”
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