Here's my understanding of the situation; terming his suit a whistle-blower suit is something of a misnomer. He's not claiming he was fired for blowing the whistle on Sandusky. He's claiming the terms of his contract were violated upon his termination and nothing about whistle-blowing...but that's your (on)crack PA reporting media for you. As I understand his claims against PSU are:
1. They took away his car prior to his termination (appears to be a violation of his contract)
2. they took away his cell phone prior to his termination (same)
3. they didn't allow him to interview with O'Brien for a new job (only assistant coach this applied to)
4. they appear to have violated COBRA rights.
What he's demanding:
1. Bonus for the bowl game against Houston. You'll recall that PSU suspended him essentially for his own safety, not over any purported misconduct, so he didn't coach at the bowl game. But he was technically still on the staff so he was still eligible for the bonus. They never gave it to him.
2. Reimbursement for the car and other guaranteed perks during the tenure of his contract.
3. Reimbursement for COBRA expenses during the gap in insurance coverage.
4. Compensation to cover any expenses for having to dip into his retirement account to make up for above shortfalls.
Is $4,000,000 a lot to ask for that? Probably, but that's par for personal damage lawsuits. That includes punitive damages as well as the above. After all, he has been reduced to sleeping in his own bedroom in his parent's hours, or last I had heard. It is my understanding that his case is very strong and will almost certainly go to settlement, otherwise PSU is probably going to get their asses handed to them.
just a couple of thoughts for clarification - the 4 million does not include punitive damages - In a lawsuit you are not allowed to specify punitive damages being sought - That is strictly up to a jury to decide. If MM were to be successful in the lawsuit what amount would the jury decide or consider to be punitive for an entity worth well over 10 billion dollars. Would PSU risk allowing a jury to go there. There is also an element of the suit that is in part a whistle blower suit. The lawsuit alleges that many of the actions PSU took (even the ones you mentioned) were intentional because he testified before the GJ. So while not a typical whistle blower suit it is alleged that MM was singled out and retaliated against for simply testifying truthfully before the Sandusky grand jury.