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USA Gymnastics files for bankruptcy after hefty lawsuits over Larry Nassar

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USA Gymnastics has filed for bankruptcy as the 200,000-member organization struggles to recover from the Larry Nassar sexual abuse scandal.The filing...

Posted: Dec. 5, 2018 2:38 PM

USA Gymnastics has filed for bankruptcy as the 200,000-member organization struggles to recover from the Larry Nassar sexual abuse scandal.

The filing Wednesday will help "expeditiously resolve the claims made by the survivors of sexual abuse perpetrated by Larry Nassar," USAG said.

Nassar, a former USA Gymnastics physician, was sentenced in January to 40 to 175 years in prison after he pleaded guilty to seven counts of sexual misconduct.

Before the sentencing, more than 150 women and girls told a judge that Nassar had sexually abused them under the guise of providing medical treatment.

Since then, USAG has been mired in one scandal after another, including recent criminal charges against former employees, a revolving door of presidents, and even the possible removal of USAG's status as the US governing body for the sport.

Attorney John Manly, who said he represents 180 gymnasts, said Wednesday that USAG's leadership "has proven itself to be both morally and financially bankrupt."

"This bankruptcy filing will suspend all lawsuits by Nassar survivors and their ongoing efforts to discover the truth about who at USA Gymnastics and the US Olympic Committee knew about Nassar's criminal conduct and failed to stop it," Manly said.

While USAG vowed to rebuild after the Nassar scandal, it hasn't been able keep its top leadership intact.

At least seven high-profile USAG officials -- plus an entire board of directors -- have recently left their jobs, even though some didn't start until after Nassar was arrested:

• In March 2017, CEO Steve Penny resigned. Two months ago, he was arrested on suspicion of removing documents related to the Nassar case from a gymnastics training facility in Texas.

• In January, the entire USA Gymnastics board resigned over the Nassar scandal. A new 15-member board took over in June.

• In May, the head of USAG's head of women's program, Rhonda Faehn, suddenly left. The organization didn't say why.

• In August, after just three days on the job, elite development coordinator Mary Lee Tracy resigned after she "inappropriately contacted a (Nassar) survivor" who had criticized her, USA Gymnastics said.

• In September, CEO Kerry Perry resigned after nine months. Critics said Perry failed to take adequate action during the Nassar fallout and gave boilerplate soundbites when asked for solutions.

• In October, former US Rep. Mary Bono resigned as interim president and CEO after less than a week on the job. She was embroiled in two controversies during her first few days in office.

• Also in October, head tumbling coach Sergio Galvez was directed to resign "pending an investigation of a report filed at the US Center for SafeSport," USAG said. No details were released on what was alleged in that report.

• And in November, USAG's longtime chief operating officer Ron Galimore resigned. USAG did not respond to CNN's questions about why Galimore left.

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