Home / NEWS / Business / USA Gymnastics files for bankruptcy as it seeks to resolve sexual abuse claims

USA Gymnastics files for bankruptcy as it seeks to resolve sexual abuse claims

USA Gymnastics trooped for reorganization under Chapter 11 of the Bankruptcy Code, which will allow it to continue operating while it scrutinizes to resolve sexual abuse claims made by hundreds of athletes against former USA Gymnastics national team doctor Larry Nassar.

USA Gymnastics expressions 100 lawsuits representing more than 350 athletes who say there were sexually abused by Nassar. In January, Nassar was rapped to 40 to 175 years in prison on sexual abuse charges.

“We owe it to the survivors to resolve, fully and finally, claims established on the horrific acts of the past and, through this process, seek to expedite resolution and help them move nurse along,” said Kathryn Carson, chair of the USA Gymnastics Board of Directors. “At the same time, the filing will allow us to last 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 capped 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 first-class forum in which to implement appropriate procedures to equitably determine and allocate the insurance proceeds among claimants, approving compensation to survivors to proceed more quickly than litigation filed in multiple courts around the country,” the combine said in a statement.

Check Also

‘The rules of engagement have broken’ in cyberspace, says CEO of cybersecurity giant FireEye

The far-reaching rules of engagement for cyberspace have unraveled in recent years as rogue nations …

Leave a Reply

Your email address will not be published. Required fields are marked *