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USA Gymnastics Files for Bankruptcy

USA Gymnastics filed for chapter 11 bankruptcy in Indianapolis federal court Wednesday, reportedly putting a stay on “all pending” lawsuits against the organization from victims of former national team doctor Larry Nassar. According to The Wall Street Journal, the bankruptcy will put an “automatic stop” to “depositions and discovery” in lawsuits related to Nassar’s years of sexual misconduct while caring for the athletes. The bankruptcy filing could also reportedly stop efforts to strip USA Gymnastics’ status as the sport’s official governing body. In a statement, the organization said legal claims from Nassar’s victims could be “covered by insurance previously purchased by USA Gymnastics,” but said it had “no other significant assets that could be used to pay claims.”

USA Gymnastics also said it would work with the U.S. Olympic Committee to “determine the best path forward for the sport of gymnastics.” There are less than 18 months left until the 2020 Olympics in Tokyo, where Simone Biles, considered one of the greatest gymnasts of all time, will compete. “We owe it to the survivors to resolve, fully and finally, claims based on the horrific acts of the past and, through this process, seek to expedite resolution and help them move forward,” Kathryn Carson, chair of the USA Gymnastics Board of Directors, said in the statement. “Our sport is safer and stronger thanks to the bravery of these women. The Chapter 11 filing and the expedited resolution of these claims are critical first steps in rebuilding the community’s trust.”