USA Gymnastics is proposing to pay athletes abused by Larry Nassar a total of $215 million as part of a plan to emerge from bankruptcy, but attorneys for the women say the deal falls short.
, putting a pause on lawsuits filed by survivors. The committee that represents survivors in the bankruptcy proceedings filed a motion last week asking that the bankruptcy be dismissed and they be allowed to resume their lawsuits.
Leung said USA Gymnastics’ settlement proposal was not in response to that. Rather, she said, the federation had 18 months from when it filed to come up with a plan to emerge from bankruptcy, and they are approaching the end of that window. The plan would give the survivors two options: Accept the offer from USA Gymnastics, which was set by the federation’s insurers, or reject it and pursue litigation on their own. The survivors also could choose to continue negotiations, with the hope the insurers might increase the money they’re willing to commit.“The only meaningful assets we have is our insurers’ policies,” Leung said.
The settlement offer also includes required benchmarks on athlete safety, though Leung said the federation would do that regardless. But Manly said the offer doesn’t include release of documents that could show how Nassar abused so many women over such a long period of time. “It lacks any disclosure, it lacks any accountability,” he said. “… They’re still treating this like a public relations problem, not the systemic rape of young women and girls.”
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