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USA Gymnastics proposed plan has $425 million for Nassar abuse survivors

Phil Helsel
Larry Nassar sits in court listening to statements before being sentenced by Judge Janice Cunningham for three counts of criminal sexual assault in Eaton County Circuit Court on February 5, 2018 in Charlotte, Michigan.
Scott Olson | Getty Images

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

The dollar amount is contained in court documents filed with an Indiana bankruptcy court Tuesday, and the organization said it was reached with a survivors' committee.

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

"After extensive discussions, this plan has been jointly proposed by USA Gymnastics and the Committee, and it is supported by many of the involved insurers," USA Gymnastics said in a statement Tuesday. "We anticipate that this plan will be confirmed later this year and greatly appreciate all parties' efforts to get to this point."

Survivors still have to vote on the plan. The $425 million figure is if insurers agree; other alternatives are for partial settlement or a return to litigation, 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 firm represents more than 200 victims, said that it is far from a settlement agreement and much more work needs to be done.

"They agree with the number, and they agree that this needs to move forward as to USA Gymnastics," Manly said. "Are the survivors enthusiastic about this? Absolutely not."

Manly said that at this point, the agreement is unfunded and incomplete. Survivors want mandatory changes to USA Gymnastics and the U.S. Olympic Committee, he said.

Nassar, the USA Gymnastics team doctor who also worked for Michigan State University, pleaded guilty in child sex abuse images and sexual abuse cases.

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

USA Gymnastics Board to resign amid sexual abuse scandal
USA Gymnastics Board to resign amid sexual abuse scandal

An earlier $215 million proposal to settle the sex abuse claims was criticized, including by Raisman, who said she wanted greater accountability for what occurred and how it was able to happen.

In July, a report from the Justice Department's top watchdog concluded that the FBI made "fundamental errors" in its investigation into Nassar. The report said the FBI failed to timely interview victims who alleged Nassar had molested them.