The school’s moral obligation is fulfilled by acknowledging the accusations and offering reasonable help.
The victim of course has right to sue the school in a civil court for $6M, and other victims have right to join the litigation. But then the school also has right to defend itself, as it is the current administration’s duty as the treasurer of tuition and endowment. It can’t just give away whatever amount is asked by the victims. It will be the court’s decision.
Probably it is also the victims’ right to use the media to hurt the school’s reputation as a bargaining tool, as the damage sought for the 40 years old crime by a former employee might not be strong enough on it’s own. Bottom line is, it’s now purely business. Nothing personal or moral. And it should not, in my opinion, affect the current applicants.