USA Gymnastics files for bankruptcy after scandal
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.