USA Gymnastics has filed a reorganization plan with the U.S. Bankruptcy Court Southern District of Indiana that proposes a $425 million settlement with the more than 500 survivors who allege they were sexually abused by former U.S. Olympic and national team physician Larry Nassar, according to documents obtained by the Southern California News Group.
The plan, however, has been approved by only four of eight insurance providers, leaving at least half of the settlement as currently proposed unfunded, according to documents.
The 133-page proposal appears designed to apply pressure on the U.S. Olympic and Paralympic Committee to fund at least part of the settlement. SCNG has previously reported that the USOPC has maintained in a series of court filings that it has no legal obligation to protect Olympic athletes from sexual or physical abuse.
“We are hopeful that this filing will encourage the remaining insurance carriers to come to the negotiating table with a meaningful offer of settlement, and that USOPC will also do the same,” said Kim Dougherty, an attorney for Nassar survivors. “It’s time. The survivors deserve closure.”
More to come on this story …
Source: Orange County Register
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