USA Gymnastics’ $ 380 Million Bankruptcy Plan Gets Approval (1)
USA Gymnastics’ Chapter 11 plan to settle hundreds of sexual abuse claims by paying victims $ 380 million, largely from insurance proceeds, has received Virginia bankruptcy laws court approval.
the plan, backed by the 476 abuse survivors who returned a vote, allows the sport’s governing body to close bankruptcy filed over revelations that team doctor Larry Nassar sexually assaulted hundreds of gymnasts women for several years. Some of the organization’s biggest stars, like Simone Biles and Aly Raisman, have joined with other gymnasts in seeking redress for the abuse they suffered.
All USAG insurers, including National Casualty Co. and Virginia Surety Co., have agreed to contribute to a bankruptcy plan trust for victims with legal claims against the organization. TIG Insurance Co. has become the latest insurer to settle with the USAG and abuse survivors, agreeing to a deal ahead of Monday’s hearing in the U.S. Southern District of Indiana Bankruptcy Court.
The US Olympic and Paralympic Committee is paying $ 34 million directly as part of the settlement.
The plan “is certainly in the best interests of creditors,” Justice Robyn L. Moberly said at the hearing before approving the plan.
“This historic settlement ends another chapter in the Larry Nassar scandal,” victim attorney John Manly of Manly, Stewart & Finaldi said in a statement on Monday. âWe won for a simple reason, the courage and tenacity of the survivors. These brave women have relived their abuse publicly, in countless media interviews, so that no more child is forced to suffer physical, emotional or sexual abuse in pursuit of their dreams.
âUSA Gymnastics is deeply sorry for the trauma and pain that the survivors endured as a result of the actions and inaction of this organization,â USAG President and CEO Li Li Leung said in a statement. communicated. “The reorganization plan that we jointly tabled reflects our own responsibility to the past and our commitment to the future.”
USA Gymnastics filed for bankruptcy in December 2018 over the consequences of Nassar’s abuse. The former team doctor is serving prison terms for sexual assault and possession of child pornography.
The organization at the start of the year reached a viable framework for dealing with abuse that relies on payments from insurers. The Chapter 11 plan, approved for a creditors vote in October, calls for distributing funds to abused gymnasts and maintaining programs to report abuse and support athletes. The USAG originally predicted the settlement fund would total around $ 425 million, but that figure was reduced following further negotiations with insurers.
“For years we have demanded changes from these organizations that we have been lacking, and the institutional reforms that form part of this regulation will help to ensure that this abuse does not happen again in the future for young athletes,” he said. Former Olympic gymnast Tasha Schwikert Moser said in a statement. declaration.
The case is In re USA Gymnastics, banker. SD Ind., N Â° 18-09108, hearing of 12/13/21.