USA Gym­nas­tics files for bank­ruptcy after scan­dal

The Record (Troy, NY) - - WEATHER -

NEW YORK >> USA Gym­nas­tics is turn­ing to bank­ruptcy in an at­tempt to en­sure its sur­vival.

The em­bat­tled or­ga­ni­za­tion filed a Chap­ter 11 bank­ruptcy pe­ti­tion Wed­nes­day in an ef­fort to reach set­tle­ments in the dozens of sex-abuse law­suits it faces and to avoid its po­ten­tial demise at the hands of the U.S. Olympic Com­mit­tee.

USA Gym­nas­tics filed the pe­ti­tion in In­di­anapo­lis, where it is based. It faces 100 law­suits rep­re­sent­ing more than 350 ath­letes in var­i­ous courts across the coun­try who blame the group for fail­ing to su­per­vise Larry Nas­sar, a team doc­tor ac­cused of mo­lest­ing them. Nas­sar, 55, worked at USA Gym­nas­tics and Michi­gan State Univer­sity. He is serv­ing life sen­tences for child porn posses­sion and abuse. Kathryn Car­son, the re­cently elected chair­woman of USA Gym­nas­tics’ board of di­rec­tors, said the or­ga­ni­za­tion’s goal is to speed things up after me­di­a­tion at­tempts failed to gain trac­tion.

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