SAN DIEGO (CA)
Insurance Journal
February 4, 2020
By Will Graves
USA Gymnastics has filed a bankruptcy plan that includes an offer of $215 million for sexual abuse survivors to settle their claims against the embattled organization.
The $215 million total is the amount the insurance carriers for USA Gymnastics and the United States Olympic and Paralympic Committee are willing to provide in hopes of ending years of legal battles with athletes who were abused by former national team doctor Larry Nassar. Survivors have been in mediation with USA Gymnastics since the organization filed for bankruptcy in December 2018.
Nassar is serving decades in prison for sexual assault and possession of child pornography in Michigan. Hundreds of athletes have come forward over the last three years saying Nassar abused them under the guise of treatment, including reigning Olympic champion Simone Biles and six-time Olympic medalist Aly Raisman.
Bankruptcy law requires businesses to provide an exit plan within 18 months, and the exit plan is another step in a still lengthy process. USA Gymnastics President Li Li Leung told The Associated Press on Thursday that the organization wants to “work toward a true consensual settlement” with survivors.
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