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Kappa Sigma won't go under. That's why they have insurance, to cover things like this. It's just like if I hit someone with my car and they sued me -- the money comes from insurance, not my bank account. (Well, except for later when my insurance costs become astronomical and I can't afford to feed my cat because I'm paying the insurance company so much money.)
Their headquarters is in Charlottesville, Virginia. I doubt they'll be sued. It DOES sound like the blame is being placed on the two guys -- wonder why them, though, and not the entire chapter?
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