USA Gymnastics said it has filed a plan Thursday with the U.S Bankruptcy Court that will allow it to break away from bankruptcy.
USA Gymnastics is facing 100 lawsuits representing 350 athletes in various courts across the country who blame the group for failing to supervise Larry Nassar, a team doctor accused of molesting them.
The plan will also give survivors one of two options, according to the USA Gymnastics' website, which is either "survivors, as a group, may vote 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 said whichever option is chosen will apply to the entire class of survivors.
USA Gymnastics also said if the survivors chose to accept the settlement, the insurers for Twistars will also give an additional $2.125 million to the settlement amount.
“It has always been our goal to reach a consensual settlement agreement with all of our creditors through the bankruptcy process,” said Li Li Leung, president and CEO of USA Gymnastics. “While we do not yet have an agreement with the Committee representing the survivors, we still hope to reach an agreement. USA Gymnastics filed its proposed plan to communicate to the survivor class the two options that are currently available based on the amount of money USA Gymnastics’ insurers are willing to pay into a settlement fund.” Leung stated that “this plan allows for ongoing negotiations among the parties and we are hopeful that continued discussions will lead to an agreement that is supported by all parties in the case.”
The USA Gymnastics said the plan also targets that enforce USA Gymnastics to continue to improve athletic safety and "provides for payment to other creditors of USA Gymnastics."
“The USA Gymnastics board of directors made the determination to file for bankruptcy to hold our organization accountable to the survivors by enabling a resolution process that would compensate them for their claims,” said Kathryn Carson, Board Chair of USA Gymnastics. “Our strong preference remains to achieve a fully consensual settlement plan and we intend to continue negotiations with the survivors and our insurance carriers to reach that goal.”
For more information on the details of the plan, click here.
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