OSU Drops Court Action Over $33M in Insurance Premium Payments

Oklahoma State University has dropped a lawsuit that sought to recover $33 million in premium payments from a program that insured the lives of certain alumni to provide payouts to Cowboy Athletics.

The university said that it will try to collect on one $10 million policy on an alumnus but won’t pursue $33 million in premium payments.

The program will suffer a loss of $22 million, but the Tulsa World reports wealthy oilman T. Boone Pickens has covered that deficit.

In 2010, Cowboy Athletics and Lincoln National Life Insurance Co. sued each other on the same day over in 2010 over OSU’s athletic foundation’s effort to cancel the policies and make no further premium payments.

Records show Pickens suggested insuring OSU graduates, with payouts to fund athletics.