According to a report by Reuters on Wednesday, USA Gymnastics has filed for bankruptcy, facing multiple legal challenges amid ongoing efforts to recover from a sexual abuse scandal. The organization sought protection from creditors in US Bankruptcy Court in Indianapolis as reflected in court documents.
During a conference call with journalists, Kathryn Carson, the chair of the USAG board, explained that while the organization is financially stable, it has been burdened by a large number of lawsuits. Carson stated, “Our organization is financially sound overall, but the significant volume of lawsuits is a major concern. This led us to initiate the Chapter 11 process to facilitate the resolution of these legal claims.”
