During the sentencing of Larry Nassar, the former team doctor, Aly Raisman spoke about the impact on victims in Michigan’s Lansing. Nassar, facing multiple counts of sexual harassment, has entered a guilty plea, as reported by Dale G. Young from The Associated Press. To keep the case afloat, USA Gymnastics has resorted to filing for bankruptcy.
In a bid to resolve over a dozen sexual harassment lawsuits and prevent potential collapse at the hands of the US Olympic Committee, the besieged organization has filed for Chapter 11 bankruptcy this week on Wednesday.
The bankruptcy petition was reportedly lodged in Indianapolis, the headquarters of the sports organization. With approximately 100 lawsuits involving 350 athletes in various courts nationwide, the organization is accused of negligence in supervising Larry Nassar, the team doctor facing allegations of abuse.
Kathryn Carson, the newly appointed chairwoman of the board of directors, explained that bankruptcy is being pursued to expedite resolution after mediation efforts failed to progress. Carson emphasized the urgency of the situation and the need for decisive action by the board.
Carson clarified that the filing does not impact the compensation available to victims, as it can be covered by previous insurance policies. She noted that the insurance companies are aware of the situation and are expected to honor their coverage commitments.
