By Top Class Actions  |  December 13, 2021

Category: Legal News
USA Gymnastics, Larry Nassar & Settlement
(Photo Credit: Luigi Fardella/Shutterstock)

USA Gymnastics Abuse Victims Settlement Overview: 

  • Who: USA Gymnastics has reached a bankruptcy settlement worth $380 million with its insurers, abuse survivors, and the U.S. Olympic & Paralympic Committee. 
  • Why: Survivors claim USA Gymnastics and the Olympic Committee were negligent in allowing sexual abuse from former team doctor Larry Nassar to go on for years. 
  • Where: The settlement agreement was presented in Indiana bankruptcy court. 

USA Gymnastics has reached a settlement worth $380 million with its insurers, victims of former team doctor Larry Nassar, and the U.S. Olympic & Paralympic Committee.

The settlement is part of USA Gymnastics Chapter 11 plan, after the organization sought bankruptcy protection in the face of hundreds of lawsuits centered around claims of sexual abuse by Nassar. 

The agreement  will increase the amount going to survivors by $86 million, Law360 reports. Insurers have agreed to pay $339 million while the Olympic Committee will pay $34 million from its treasury. 

Victims claim USA Gymnastics and the Olympic Committee were negligent in allowing the abuse from Nassar — who has since been sentenced to de facto life imprisonment without parole — to go on for years. 

Nassar had been the USA Gymnastics team doctor for 18 years and faced accusations of sexual abuse from dozens of former gymnasts who were in his care.

The settlement will help survivors pay for mental health services for issues such as substance abuse and post-traumatic stress disorder, which their insurance may not otherwise cover. 

USA Gymnastics and the Olympic Committee have also agreed to allow survivors to fill board seats and to implement new policies that will help keep athletes safe from abuse in the future, reports Reuters.  

“This settlement is about the brave survivors who came forward, forced these organizations to listen, and demanded change,” Michelle Simpson Tuegel, counsel for dozens of abuse survivors, said in a joint statement with Tasha Schwikert Moser, co-chair of the Survivors Creditors Committee.

USA Gymnastics says it expects to file a modified version of its settlement plan with an Indiana bankruptcy court by the end of the day, reports Law360. 

In 2018, the Olympic Committee and USA Gymnastics were accused of failing to report sexual abuse by a former coach, Richard Carlson.

Do you believe the settlement is an appropriate resolution to the claims against USA Gymnastics and the Olympic Committee? Let us know in the comments or click here if you think you have sex abuse claim against USA gymnastics or another youth organization. 


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