A $425 Million Settlement With Survivors Is Being Sought By USA Gymnastics

INDIANAPOLIS — The legal ramifications of the Larry Nassar sexual abuse crisis may be nearing an end for USA Gymnastics.

On Tuesday, the organization and hundreds of women who allege they were mistreated by the former national team doctor or others associated with the national governing body submitted a $425 million settlement plan in U.S. Bankruptcy Court, potentially ending years of litigation.

“This approach was jointly presented by USA Gymnastics and the Committee after long talks, and it is supported by many of the participating insurers,” USA Gymnastics stated in a statement. “We expect this plan to be finalized later this year, and we thank all parties’ efforts in getting us here.”

The Survivors Committee and USA Gymnastics collaborated on the idea. The survivors, as well as any other creditors, must still ratify it.

While the amount each survivor would get under the proposed arrangement is unknown, it is substantially more than the $215 million settlement offer made by USA Gymnastics and the US Olympic and Paralympic Committee in February 2020.

In May 2018, Nassar’s former employer, Michigan State University, agreed to pay $500 million to more than 300 women and girls who claimed Nassar assaulted them.

Claimants must go through a two-step voting procedure to decide whether or not to accept the offer. The agreement must be approved by at least half of the claimants who vote, and the majority must represent at least two-thirds of the settlement’s monetary worth.

Since the organization filed for bankruptcy in December 2018, survivors have been in mediation with USA Gymnastics.

Nassar is serving a life sentence in Michigan for sexual assault and possession of child pornography. Hundreds of athletes, including seven-time Olympic medalist Simone Biles and six-time Olympic medalist Aly Raisman, have come out in the last five years to allege Nassar assaulted them under the pretext of treatment.

By November 8, all votes must be cast, and any written objections to the plan must be received by November 19. On the 8th and 9th of December, a confirmation hearing will be held.

During the U.S. Olympic Trials in June, USA Gymnastics president Li Li Leung expressed confidence that mediation with the survivors would be finished by the end of the year.

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