USA Gymnastics filed for reorganization under Chapter 11 of the Bankruptcy Code, which will allow it to continue operating while it tries to resolve sexual abuse claims made by hundreds of athletes against former USA Gymnastics national team doctor Larry Nassar.
USA Gymnastics faces 100 lawsuits representing more than 350 athletes who say there were sexually abused by Nassar. In January, Nassar was sentenced to 40 to 175 years in prison on sexual abuse charges.
“We owe it to the survivors to resolve, fully and finally, claims based on the horrific acts of the past and, through this process, seek to expedite resolution and help them move forward,” said Kathryn Carson, chair of the USA Gymnastics Board of Directors. “At the same time, the filing will allow us to continue the important work of supporting our outstanding gymnasts at all levels, including the current and next generation of Olympic hopefuls.”
The athletes’ claims against USA Gymnastics are covered by insurance and the amount of available insurance proceeds is not affected by the bankruptcy filing.
“USA Gymnastics believes that the Bankruptcy Court is the best forum in which to implement appropriate procedures to equitably determine and allocate the insurance proceeds among claimants, allowing compensation to survivors to proceed more quickly than litigation filed in multiple courts around the country,” the organization said in a statement.