USA Gym body files for bankruptcy
USA Gymnastics said on Wednesday it had filed for bankruptcy protection as the embattled governing body continues to grapple with the aftermath of the Larry Nassar abuse scandal.
“This filing will enable USA Gymnastics to continue to support its athletes, to fully operate and meet its responsibilities to the entire membership and to expeditiously resolve the claims made by the survivors of sexual abuse perpetrated by Larry Nassar,” the organisation said in a statement.
“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,” said Kathryn Carson, recently elected as chair of the USA Gymnastics Board of Directors.
However John Manly, an attorney who represents many survivors of Nassar’s crimes, challenged the suggestion that USAG had sought bankruptcy to speed up resolution of cases.
“Despite what USAG says, bankruptcy is not a method for resolving claims more quickly,” Manly said.