Proposed USA Gymnastics Plan Has $425 Million for Nassar Abuse Survivors

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A USA Gymnastics reorganization plan includes up to $425 million for survivors who say they were sexually assaulted by former team doctor and convicted sex offender Larry Nassar.

The dollar amount is stated in court documents filed Tuesday in a bankruptcy court in Indiana, and the organization said it was reached with a survival committee.

Hundreds of women say they were sexually assaulted by Nassar, the former US gymnastics doctor who pleaded guilty in a Michigan court in 2017 to sexually assaulting 10 minors and serving up to 175 years in prison. He is expected to spend the rest of his life behind bars.

“After extensive discussions, this plan has been jointly proposed by USA Gymnastics and the committee and is supported by many of the affected insurers,” USA Gymnastics said in a statement Tuesday. “We expect this plan to be confirmed later this year and greatly appreciate the efforts of all parties to reach this point.”

Survivors have yet to vote on the plan. The $425 million figure is if the insurers agree; other alternatives are to partial settlement or a return to lawsuits, according to the documents. USA Gymnastics filed for bankruptcy protection in 2018 in the wake of the scandal and lawsuits.

Attorney John C. Manly, whose office represents more than 200 victims, said it is far from a settlement agreement and much more work needs to be done.

“They agree on the number, and they agree that this should be moving forward in regards to USA Gymnastics,” Manly said. “Are the survivors excited about this? Absolutely not.”

Manly said the agreement is currently unfunded and incomplete. Survivors want mandatory changes to US gymnastics and the US Olympic Committee, he said.

Nassar, the US gymnastics team doctor who also worked for Michigan State University, pleaded guilty in depictions of child abuse and sexual abuse.

Hundreds of girls and women have accused him of sexually assaulting them under the guise of medical treatment for two decades, including seven-time Olympic medalist Simone Biles and six-time Olympic medalist Aly Raisman.

An earlier $215 million proposal to settle the sexual abuse claims was criticized, including by Raisman, who said she wanted more responsibility for what happened and how it could have happened.

In July, a report by the Justice Department’s top watchdog concluded that the FBI made “fundamental mistakes” in its investigation of Nassar. According to the report, the FBI failed to timely interview the victims who alleged that Nassar had harassed them.

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