USA Gymnastics, the Survivors Committee representing women who were sexually assaulted by former U.S. Olympic physician and national team Larry Nassar, Olympic and national team coaches, has submitted a proposed $400 settlement agreement with the U.S. Bankruptcy Court for the Southern District of Indiana.
In what the two sides see as a major advance in a nearly three-year bankruptcy case, USA Gymnastics and survivors have agreed to a proposed settlement of $4,065,9129 as part of a reorganization plan after a week of increasingly intense discussions between USA and US Olympic Gymnastics. and the Paralympic Committee on the USOPC’s financial responsibilities in the case.
Recent discussions in the case have revealed an unlikely alliance between USA Gymnastics, the Indianapolis-based National Sports Administration, and the Survivors’ Committee on one side, and the USOPC on the other.
USOPC lawyers proposed a $340 million settlement last week and then raised it to $360 million over the weekend.
“This is a last-ditch effort by the Survivors Committee to come to a just and equitable settlement,” said John Manley, attorney for more than 100 survivors. USA Gymnastics supports this and has recognized its responsibility.
But if the USOPC could not see its clear path to agreeing to a fair and just settlement, all this was a waste of time. And I don’t expect them to do that. The USOPC under his leadership and board has empowered people like Larry Nassar. The USOPC has repeatedly said it has no duty to protect athletes from predators like Larry Nassar. To put a good point on that, they emphasized that they had no duty to protect Simone Biles from Larry Nassar.
“This is something I would expect from Catholic bishops and not the number one sports organization in the United States.”
Under the terms of the proposed agreement, former USA Gymnastics CEO Steve Penny, former US Olympics and national team managers Bella and Martha Karolyi, former USA Gymnastics vice president Rhonda Fahn, and former organization chairman Paul Parilla, an attorney, will be released. Orange County. From other lawsuits related to the Nassar case.
The agreement was not released to U.S. Olympic coach Don Peters, the SCATS, the Huntington Beach Gymnastics, who helped Peters make the world famous, former Olympic and National Team coaches Steve and Beth Rybacky, or the Charter Oaks of Southern California.
The settlement has yet to be fully funded, according to court documents. American Gymnastics, USOPC and Karolyis insurers have so far committed $292,332,331 in funding.
“This report mischaracterizes the mediation case and violates the mediation process by disclosing information that the court has ordered to be kept confidential,” USOPC said in a statement to the Southern California News Group Thursday night. Since March 2019, the USOPC has been actively and consistently involved in efforts to reach a resolution that compensates Nassar abuse survivors. In contrast to this report, we have offered to contribute significant funds to such a resolution. This violation of the court order will not preclude our efforts to reach a just settlement for all survivors.”
USOPC reported $63.2 million in revenue in 2020 with $245.3 million in assets, according to Internal Revenue Service files and other financial documents.
Sarah Hirschland, CEO of USOPC, received $882,434 in compensation in 2020 plus an additional $36,419 from related organizations. USOPC paid $4.02 million last year in salaries to officers, executives and other key employees, according to IRS files and financial records. Three USOPC employees earned more than $500,000 in 2020, which is more than $300,000 in ten. The organization also paid $40.2 million in employee salaries plus $6.3 million in contributions for pension and other benefits.
The USOPC also spent $6.3 million on legal fees in 2020, according to the documents.
The filing also comes at a time when the US Senate considers a Olympic and world gymnasts Simon Biles, Maggie Nichols, McKayla Maroney, and Aly Raisman ask Congress to dissolve the USOPC board Under the provisions of the new Federal Control Law.
As early as November 1, Congress can dissolve the USOPC board under the landmark 2020 Athlete, Paralympic, and Amateur Sports Empowerment Act. The act places greater legal responsibility on the USOPC and national governing bodies under its umbrella for sexual abuse by coaches and officials and provides Congress with mechanisms to dissolve the USOPC’s board of directors and de-certify NGBs.
USA Gymnastics, which faces hundreds of civil lawsuits from survivors sexually abused by Nassar as well as women who allege they were sexually assaulted by former Olympic team coaches Peters and John Gedert, and has been stripped of national governing body status by the USOPC, has been lifted Chapter 11 lawsuit in US Bankruptcy Court in December 2018.
The case, due to federal bankruptcy guidelines, put a moratorium on legal action against American gymnastics and steps taken by the United States Olympic and Paralympic Committees to revoke the national governing body’s accreditation.
USA Gymnastics proposed a $217 million settlement with survivors as part of a reorganization plan filed with bankruptcy court in early 2020. The disclosure statement filed with the court outlined a tiered payment plan in which USA Gymnastics would pay $1.25 million to Olympic and former world championship team members who were exposed. For abuse by Nassar but $82,550 for the others.
Lawyers for 512 of the 546 survivors who said they were sexually assaulted by Nassar, coaches, and officials for the USOPC National Team and USA National Gymnastics Team, told SCNG in March 2020 that None of their clients will vote to accept the proposed settlement. The rejection was not just about the proposed financial settlement. Survivors, such as Congress, are demanding that USA and American Gymnastics turn over documents that will provide a complete, if not complete, picture of who knew, and who ignored and covered up the abuses committed by Nassar and others such as the former Olympic team coaches. Peters and Gedert.
USA Gymnastics and Survivors Committee filed a reorganization plan with bankruptcy court in August He proposed a $425 million settlement with more than 500 survivors who claim to have been sexually assaulted by Nassar, Peters, Gedert, and others.
While this plan was approved by the Survivors’ Committee, only four of the eight insurers approved the proposal and left at least half of the settlement unfunded as currently offered, according to the filing.
The 133-page proposal appears designed to put pressure on the USOPC to fund at least part of the settlement. SCNG previously reported that the USOPC had asserted in a series of court filings that it had no legal obligation to protect Olympic athletes from sexual or physical abuse.
USA Gymnastics had a longstanding policy before the Nassar scandal of not warning gym members or parents of athletes about allegations of sexual misconduct against coaches or other individuals, and is a top aide to the organization’s former CEO who was admitted in a previously undisclosed department. Deposition detection by SCNG in June.
Renee Jamieson, administrative assistant to former CEO of USA Gymnastics Penny from 2005 to 2011 and thereafter director of administration and Olympic relations for the organization, also disclosed in acknowledgment that employees were instructed by USA Gymnastics not to report complaints of sexual misconduct to law enforcement or Child Protection Services – although they were informed by the organization that they were authorized correspondents.
Instead, prior to 2015 USA Gymnastics employees were required to refer complaints of sexual misconduct to the attorneys representing the organization — first Jack Swarbrick, then Scott Hemsel, Jamison said. Swarbrick is currently the athletic director of the University of Notre Dame.
Jamieson said politics was one reason why Penny and the USA did not notify Michigan State University officials about the allegations of sexual assault against Nassar when Penny was first brought to his attention in June 2015. Michigan state officials said they were unaware of the allegations that Nassar had He sexually assaulted members of Team USA under the guise of medical treatment until the allegations were made public in September 2016.