USA Gymnastics filed for bankruptcy in December '18. while facing hundreds of lawsuits related to NassarGETTY IMAGES
Attorneys representing survivors of Larry Nassar’s sexual abuse asked a U.S. Bankruptcy judge to "dismiss USA Gymnastics bid for Chapter 11 protection," according to Scott Reid of the ORANGE COUNTY REGISTER. USAG, facing hundreds of lawsuits related to Nassar, "filed for under protection Chapter 11 in U.S. Bankruptcy for the Southern District of Indiana" in December '18. That Chapter 11 filing "prompted an automatic stay on all legal proceedings and litigation, including discovery, against USA Gymnastics." Should the case be dismissed, civil suits "filed by alleged survivors and others against USA Gymnastics and related proceedings could move forward." The filing "reveals that there has been no significant progress between attorneys for the survivors and USA Gymnastics lawyers for months." James Stang, an attorney for a committee representing the survivors, said, "Based on my communications with USAG’s counsel, USAG apparently has not undertaken any material efforts and other actions to obtain and maintain important sponsorships for and in connection with the Summer Olympic Games." USA Gymnastics in a statement said the organization is "reviewing the motion. It disagrees with the statements made in the motion and remains committed to working toward a resolution with the survivors and is committed to athlete safety." Reid notes a separate filing by USAG CFO Bernadette Barron listed the organizations’s "total assets and total liabilities and equity at $81, 805,026." The filing also listed $1.4M in revenue for December and $2.6M in expenses (ORANGE COUNTY REGISTER, 1/22).
