USA Gymnastics Files For Bankruptcy After It Fails To Recover From Larry Nassar Sexual Abuse Scandal

USA Gymnastics filed for bankruptcy this week after struggles to recover from the Larry Nassar sexual abuse scandal. The organization said the filing for bankruptcy protection would not affect its day to day operations.

Instead, the USAG said the filing will “expedite an equitable resolution of the claims made by the survivors of sexual abuse perpetrated by Larry Nassar. We owe it to these brave women who have come forward.”

According to Attorney John Manly, USAG’s leadership “has proven itself to be both morally and financially bankrupt.” He said, “This bankruptcy filing will suspend all lawsuits by Nassar survivors and their ongoing efforts to discover the truth about who at USA Gymnastics and the US Olympic Committee knew about Nassar’s criminal conduct and failed to stop it.”

CNN reports that Manly’s firm, Manly, Stewart & Finaldi, represents clients with 215 claims against #USAGymnastics that will be paid out by insurance companies. He estimates there are 350-450 claims nationwide and said a recent court order indicated there are 345 plaintiffs in federal cases in Michigan that are consolidated.

Nassar, a former USA Gymnastics physician, was sentenced in January to 40 to 175 years in prison after he pled guilty to 7 counts of sexual misconduct and won’t be eligible for release from federal custody until 2069. More than 150 women and girls testified that Nassar sexually abused them under the guise of providing medical treatment.

In addition to the #bankruptcy, the organization has had at least seven high-profile USAG officials, plus the whole board of directors, recently resigned from their positions, even some who started after Nassar was arrested.