USA Gymnastics files for bankruptcy after hefty lawsuits over Larry Nassar

USA Gymnastics has filed for bankruptcy as the 200,000-member organization struggles to recover from the Lar...

Posted: Dec 6, 2018 9:57 AM
Updated: Dec 6, 2018 9:57 AM

USA Gymnastics has filed for bankruptcy as the 200,000-member organization struggles to recover from the Larry Nassar sexual abuse scandal.

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

Bankruptcy

Business financial trouble

Business, economy and trade

Company activities and management

Crime, law enforcement and corrections

Crimes against persons

Criminal offenses

Financial performance and reports

Gymnastics

Larry Nassar

Resignations

Sex crimes

Sexual assault

Sexual misconduct

Societal issues

Society

Sports and recreation

Sports figures

Sports organizations and teams

USA Gymnastics

Violence in society

Continents and regions

Law and legal system

Lawsuits and claims

North America

The Americas

Trial and procedure

United States

Scandals

The organization said the filing for bankruptcy protection doesn't change its day-to-day operations.

Attorney John Manly said that USAG's leadership "has proven itself to be both morally and financially bankrupt."

"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," Manly said.

Stu Mollrich, a senior attorney at Manly, Stewart & Finaldi, said their firm represents clients with 215 claims against USA Gymnastics.

He estimated there are 350 to 400 claims nationwide. He told CNN a recent court order indicated there are 345 plaintiffs in federal cases in Michigan that are consolidated.

The claims against USAG will be paid by insurance companies, the organization said.

"We believe that the bankruptcy court is the best forum in which to implement appropriate procedures to equitably resolve claims and allocate the insurance proceeds among claimants," USA Gymnastics said.

Nassar, a former USA Gymnastics physician, was sentenced in January to 40 to 175 years in prison after he pleaded guilty to seven counts of sexual misconduct. Nassar, 55, is in a federal prison in Florida and isn't eligible for release until 2069.

Before the sentencing, more than 150 women and girls told a judge that Nassar had sexually abused them under the guise of providing medical treatment.

Since then, USAG has been mired in one scandal after another, including recent criminal charges against former employees, a revolving door of presidents, and even the possible removal of USAG's status as the US governing body for the sport.

"We expect to keep working with (United States Olympic Committee) to act in the best interests of all gymnasts," USA Gymnastics said in a statement Wednesday.

While USAG vowed to rebuild after the Nassar scandal, it hasn't been able keep its top leadership intact.

At least seven high-profile USAG officials -- plus an entire board of directors -- have recently left their jobs, even though some didn't start until after Nassar was arrested:

• In March 2017, CEO Steve Penny resigned. Two months ago, he was arrested on suspicion of removing documents related to the Nassar case from a gymnastics training facility in Texas.

• In January, the entire USA Gymnastics board resigned over the Nassar scandal. A new 15-member board took over in June.

• In May, the head of USAG's head of women's program, Rhonda Faehn, suddenly left. The organization didn't say why.

• In August, after just three days on the job, elite development coordinator Mary Lee Tracy resigned after she "inappropriately contacted a (Nassar) survivor" who had criticized her, USA Gymnastics said.

• In September, CEO Kerry Perry resigned after nine months. Critics said Perry failed to take adequate action during the Nassar fallout and gave boilerplate soundbites when asked for solutions.

• In October, former US Rep. Mary Bono resigned as interim president and CEO after less than a week on the job. She was embroiled in two controversies during her first few days in office.

• Also in October, head tumbling coach Sergio Galvez was directed to resign "pending an investigation of a report filed at the US Center for SafeSport," USAG said. No details were released on what was alleged in that report.

• And in November, USAG's longtime chief operating officer Ron Galimore resigned. USAG did not respond to CNN's questions about why Galimore left.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 501097

Reported Deaths: 9990
CountyCasesDeaths
Harrison34338538
DeSoto32117403
Hinds31939628
Jackson24494382
Rankin21995390
Lee15543235
Madison14581280
Jones13851242
Forrest13453251
Lauderdale11991317
Lowndes11050188
Lamar10521135
Pearl River9533237
Lafayette8550140
Hancock7732127
Washington7438158
Oktibbeha7146131
Monroe6777177
Warren6694176
Pontotoc6664102
Neshoba6637206
Panola6531131
Marshall6467134
Bolivar6317148
Union602894
Pike5820152
Alcorn5669101
Lincoln5436135
George496879
Scott472898
Tippah469281
Prentiss467281
Leflore4658144
Itawamba4636105
Tate4588111
Adams4587119
Copiah448592
Simpson4446116
Yazoo444187
Wayne439772
Covington428894
Sunflower4239105
Marion4226108
Coahoma4160105
Leake408288
Newton381779
Grenada3707108
Stone360364
Tishomingo359792
Attala331589
Jasper329965
Winston314291
Clay308076
Chickasaw300367
Clarke292494
Calhoun279446
Holmes267987
Smith264050
Yalobusha234047
Tallahatchie228051
Greene219348
Walthall218763
Lawrence212940
Perry205556
Amite205156
Webster202946
Noxubee186740
Montgomery179656
Jefferson Davis171743
Carroll169138
Tunica159839
Benton148838
Kemper141941
Choctaw133426
Claiborne132737
Humphreys129538
Franklin120228
Quitman106428
Wilkinson105139
Jefferson94534
Sharkey64120
Issaquena1937
Unassigned00

Alabama Coronavirus Cases

Cases: 819597

Reported Deaths: 15406
CountyCasesDeaths
Jefferson1147901924
Mobile725791338
Madison52306697
Shelby37597350
Baldwin37245552
Tuscaloosa35101612
Montgomery34106740
Lee23526246
Calhoun22225488
Morgan20941378
Etowah19825500
Marshall18361304
Houston17384412
St. Clair16054339
Cullman15443293
Limestone15343199
Elmore15241286
Lauderdale14302295
Talladega13836283
DeKalb12649261
Walker11202370
Blount10192176
Autauga10043148
Jackson9871184
Coffee9210191
Dale8897185
Colbert8860201
Tallapoosa7084198
Escambia6772134
Covington6712183
Chilton6641162
Russell636659
Franklin5959105
Chambers5607142
Marion5005127
Dallas4973200
Pike4795106
Clarke475584
Geneva4571127
Winston4516103
Lawrence4321117
Bibb425186
Barbour357776
Marengo338090
Monroe331464
Randolph329764
Butler326396
Pickens316284
Henry312666
Hale311388
Cherokee302860
Fayette292880
Washington251551
Cleburne247760
Crenshaw245275
Clay243368
Macon234663
Lamar224147
Conecuh186153
Coosa180240
Lowndes175164
Wilcox168839
Bullock151644
Perry138840
Sumter133038
Greene126744
Choctaw88527
Out of AL00
Unassigned00
Tupelo
Partly Cloudy
62° wxIcon
Hi: 82° Lo: 49°
Feels Like: 62°
Columbus Afb
Clear
58° wxIcon
Hi: 81° Lo: 48°
Feels Like: 58°
Oxford
Partly Cloudy
61° wxIcon
Hi: 81° Lo: 48°
Feels Like: 61°
Columbus Afb
Clear
58° wxIcon
Hi: 81° Lo: 48°
Feels Like: 58°
Clear cool and dry to begin your weekend, but both afternoons should be a little bit above what we expect for this time of year temperature wise. Rain chances begin to return late Sunday night, with at least two chances for storms over the next week, summer could be strong.
WTVA Radar
WTVA Temperatures
WTVA Severe Weather