Nassar survivors offered $215M settlement by USA Gymnastics

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USA Gymnastics filed a plan today to help the organization come back from bankruptcy, according to a news release by USA Gymnastics.

The plan offers sexual abuse survivors one of two options: they may vote as a group to accept $215 million to settle all of their claims, or they may vote to continue to pursue their lawsuits and collect any judgments from insurance policies available to USA Gymnastics.

USA Gymnastics President Li Li Leung described the $215 million as the amount the insurance carriers have agreed to provide at this point, according to the Associated Press.

Athletes who were abused by former national team doctor Larry Nassar have been in mediation with USA Gymnastics since the organization filed for bankruptcy in December 2018.

“It has always been our goal to reach a consensual settlement agreement with all of our creditors through the bankruptcy process.” said Leung.

If the survivors vote to accept the settlement, the insurers for Twistars will also contribute an additional $2.125 million to the settlement amount.

Leung emphasized that “our top priority remains athlete safety.”

“This proposed plan does not include the critical structural changes necessary to ensure the safety of girls moving forward, nor does it appropriately address the myriad physical and emotional challenges the victims face as a result of these crimes,” said John Manly, an attorney representing 200 Nassar survivors.

At the time it filed for bankruptcy, USA Gymnastics was facing 100 lawsuits representing more than 350 athletes in various courts across the country who blame the group for failing to supervise Nassar.

Michigan State University, where Nassar worked for decades, agreed in May 2018 to pay $500 million to more than 300 women and girls who said they were assaulted by Nassar.

Bankruptcy law requires businesses to provide an exit plan within 18 months, the organization hopes to have a bankruptcy exit plan of some kind approved ahead of the Toyko Olympics, according to the Associated Press.

The Tokyo Olympics begin in July.

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