Reeling from Nassar scandal, USA Gymnastics files for bankruptcy


USA Gymnastics, facing 100 lawsuits from victims of former team doctor Larry Nassar, filed bankruptcy on Wednesday.
Nassar was sentenced to 125 years in prison earlier this year after he pleaded guilty to molesting 10 girls. The new chairwoman of the USA Gymnastics board of directors, Kathryn Carson, said the organization owes it to 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." The claims will be covered by insurance, but USA Gymnastics, which has lost several major sponsors, says it has "no other significant assets" to cover other expenses.
John Manly, an attorney representing 180 women who say Nassar sexually abused them, told NBC News that by filing for bankruptcy, USA Gymnastics is able to block the effort to "discover the truth about who at USA Gymnastics and the U.S. Olympic Committee knew about Nassar's criminal conduct and failed to stop it. The leadership of USA Gymnastics has proven itself to be both morally and financially bankrupt. They have inflicted and continue to inflict unimaginable pain on survivors and their families."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
-
New York court tosses Trump's $500M fraud fine
Speed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in Intel
Speed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to China
Speed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with Disney
Speed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year