USA Gymnastics has filed for bankruptcy as the aftermath of the sex abuse scandal that has rocked the gymnastics community continues

By Emily Zauzmer
December 06, 2018 11:02 AM
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USA Gymnastics has filed for bankruptcy as the aftermath of the sex abuse scandal that has rocked the gymnastics community continues.

The organization announced the news in a statement on Wednesday.

“USA Gymnastics today filed a voluntary petition for protection under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Indiana,” the statement said.

“This filing will enable USA Gymnastics to continue to support its athletes, to fully operate and meet its responsibilities to the entire membership and to expeditiously resolve the claims made by the survivors of sexual abuse perpetrated by Larry Nassar,” the statement continued.

In January, Nassar, a former doctor for Michigan State University and USA Gymnastics, was sentenced to more than 175 years in prison. He pleaded guilty in November to several counts of first-degree criminal sexual conduct.

More than 150 women and girls have accused Nassar of assault, including gymnasts Aly Raisman, Jordyn Wieber, Simone Biles, McKayla Maroney, Gabby Douglas, Madison Kocian and Kyla Ross.

“We owe it to the 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,” Kathryn Carson, the chairperson of the board of directors, said in the statement.

“Our sport is safer and stronger thanks to the bravery of these women,” Carson stated. “The Chapter 11 filing and the expedited resolution of these claims are critical first steps in rebuilding the community’s trust.”

An FAQ page said that USA Gymnastics expects to “continue its day-to-day operations” and that “no set deadline” exists for the bankruptcy proceedings.

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USA Gymnastics has struggled to appease its critics in the wake of the scandal.

In May, the Indianapolis Star reported that USA Gymnastics allegedly worked with Nassar to make excuses for his absence when he was under investigation.

In September, Kerry Perry resigned as CEO after nine months. In October, Mary Bono stepped down as interim CEO after Biles called her out for an anti-Nike tweet and Bono’s relationship with a law firm linked to the Nassar scandal drew ire, according to The New York Times.

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