Facing 100 lawsuits from more than 350 sexual-assault victims of team physician Larry Nassar, Indianapolis-based USA Gymnastics filed for chapter 11 protection today. The case is pending in the Bankruptcy Court for the Southern District of Indiana.
“We owe it to the survivors to resolve, fully and finally, claims based on the horrific acts of the past and, through this process, seek to expedite resolution and help them move forward,” said Kathryn Carson, the newly-elected chair of USA Gymnastics’ Board of Directors. In addition, the Chapter 11 filing will put on hold the U.S. Olympic Committee’s effort to dismantle the sport’s governing body, according to Carson, providing “breathing room” for the organization to continue running the sport at a grassroots and national level. The full press release is available here.
But as reported by NBC News, lawyer John Manly, who represents 180 alleged victims of Nassar, has this to say: “The leadership of USA Gymnastics has proven itself to be both morally and financially bankrupt” and the bankruptcy filing will block the victims’ “ongoing efforts to discover the truth about who at USA Gymnastics and the U.S. Olympic Committee knew about Nassar’s criminal conduct and failed to stop it.”
The case number is 18-09108. The bankruptcy petition is available for download.