USA Gymnastics has reached a settlement agreement with the survivors of Larry Nassar as well as those sexually abused by others in power at the organization. According to USA Today's Nancy Armour, the $425 million proposal still requires full approval from survivors and creditors.
The agreement was filed in U.S. Bankruptcy Court for the Southern District of Indiana on Tuesday.
“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. “We anticipate that this plan will be confirmed later this year and greatly appreciate all parties’ efforts to get to this point.”
The offer is nearly double the $215 million USA Gymnastics presented in January 2020, however, Armour noted it's unclear just how much each survivor would see from that sum. The agreement would also be subject to additional debts the company incurred when filing for bankruptcy in 2018. Accepting the offer would end litigation against USA Gymnastics, the U.S. Olympic and Paralympic Committee and Bela and Martha Karolyi.
The initial offer faced immense criticism because of its relatively low total and the ability of the USOPC to be released from lawsuits with minimal financial responsibility. U.S. Bankruptcy Judge Robyn Moberly was among those who knocked the proposal saying the third parties should be held more financially liable.
"It isn't news to anybody on this phone call, nor is it news to me, that the U.S. Olympic Committee needs to be an active participant, and I mean beyond just throwing in their insurance coverage in this," Moberly said on a February 2020 call, according to Armour.
Nassar survivors previously agreed to a $500 million settlement with Michigan State University in 2018.
The former team doctor for the U.S Women's National Gymnastics team was sentenced to 60 years in federal prison for child pornography and tampering with evidence, 40 to 175 years in the state of Michigan for sexual assault of minors and an additional 40 to 125 years in prison for sexual assault. He was imprisoned in 2018 without parole.