USAG Bankruptcy Pulls Abuse Victims Into Insurance Fight

Law360 (February 7, 2020, 9:37 PM EST) -- USA Gymnastics unveiled a bankruptcy plan late last month to settle potentially hundreds of sexual abuse claims against former national team doctor Larry Nassar without the support of his victims, setting up what experts say will be tense negotiations that could turn on a demand to release the U.S. Olympic and Paralympic Committee from liability as part of the deal.

After failing to reach an agreement with Nassar's victims during more than a year of negotiations, USAG turned to its insurers, which have agreed to pay $215 million toward the victims' claims. The proposed plan would provide two paths for recovery,...

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