Bloomberg Law
Sept. 1, 2021, 7:08 PM

USA Gymnastics, Abuse Victims Reach $425 Million Bankruptcy Deal

Alex Wolf
Alex Wolf
Reporter

USA Gymnastics has reached a $425 million deal with hundreds of sexual abuse victims, signaling a potential end to the organization’s three-year bankruptcy and litigation related to former team doctor Larry Nassar’s conduct.

The settlement, part of a joint Chapter 11 plan filed Tuesday, calls for creating a victims’ trust to distribute the funds to abused gymnasts. The $425 million offer is contingent on contributions from all of USA Gymnastics’ liability insurers, some of which haven’t yet agreed to the proposed payments.

“We anticipate that this plan will be confirmed later this year and greatly appreciate all parties’ efforts to ...

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