Bring it on. To defend a suit like that would require access to all of the records that PSU wants to keep buried and away from discovery. This is why they settle the allegations that the BWI crazies say are without merit. (Well, that or all allegations are true in which case there is no defamation because it is, well, true.) Seriously, wouldn't any of you love to have discovery and subpoena power to defend a suit like that? The book and screenplay revenues would easily cover your costs.
That is why the insurance suit is a big deal. If PSU doesn't just give in, the insurance company is going to get to open the closets where the skeletons are kept. That is not going to end well for Dear Ole State. And believe it that the new regime at PSU will sacrifice the legacy of the dead guy to try to save the institution.