On December 13, 2021, parties announced a $380m settlement had been reached in the USA Gymnastics sexual abuse litigation. The settlement was reached in the U.S. Bankruptcy Court for the Southern District of Indiana.
The plaintiffs’ claims stem from the allegations of abuse against team doctor Larry Nassar. Hundreds of gymnasts filed lawsuits against USA Gymnastics and the U.S. Olympic and Paralympic Committee citing negligence that allowed the abuse to go on for years.
In 2018, the organizations sought bankruptcy protection from the lawsuits. $339 million of the settlement will be funded by insurers, while the remaining $34 million+ will be funded by the treasury of the Olympic Committee.
The settlement includes monies for the survivors, for future mental health treatment that may not be covered by insurance and non-monetary terms to protect future athletes.
Parties expect to file the updated version on the Chapter 11 plan with the court by the end of business on December 13, 2021.
The case is In re: USA Gymnastics, case number 1:18-bk-09108, in the U.S. Bankruptcy Court for the Southern District of Indiana.
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