Bankrupt USA Gymnastics and sexual abuse survivors reach an agreement on proposed $425 million settlement

The multi-million dollar plan was filed jointly with a committee that represents survivors of former coach Larry Nassar.

• USA Gymnastics proposed a $425 million settlement for survivors of sexual abuse by Larry Nassar.
• The plan was filed jointly with a committee that represents Nassar's survivors although other parties still need to approve.
• Last year's offer of a $215 million settlement was rejected by gymnasts and the bankruptcy court.
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USA Gymnastics put forth a plan for a $425 million settlement with survivors of disgraced team doctor Larry Nassar. The proposal was filed with the joint approval of a Survivors' Committee that represents the hundreds of USAG abuse survivors in the organization's bankruptcy proceedings.

The plan, which was filed Tuesday in the U.S. Bankruptcy Court for the Southern District of Indiana, comes after a lower settlement offer of $215 million was rejected both by the sexual abuse victims and the bankruptcy court in 2020, according to the New York Times.

In 2018, USAG filed for bankruptcy amid lawsuits from more than 500 gymnasts who said they were abused by Nassar, their coach, or someone else affiliated with gymnastics, USA Today reported. That year, Nassar was sentenced to 175 years in prison for sexually abusing multiple girls and women, including gymnastics superstar Simone Biles. Nearly one hundred survivors made victim impact statements at his trial.

Attorney John Manly's firm represents over 200 of the abuse victims. Manly said USA Gymnastic's multi-million dollar proposal is only a start in the settlement, and the victims want to see systemic changes to the gymnastics organization, NBC News reported.

"They agree with the number, and they agree that this needs to move forward as to USA Gymnastics," Manly told NBC News.

Speaking with USA Today, Manly added that the negotiations are far from complete as there are outstanding questions about funding. A spokesperson for Manly did not immediately return Insider's request for comment.

"What this isn't is a settlement. This is a proposed resolution that the Survivors' Committee supports," Manly told USA Today. "Let me be clear, it's not funded. There's a lot of work left to be done before this is over."

The settlement will require significant contributions from USAG's and the US Olympic & Paralympic Committee's insurers, some of which haven't agreed to payments at all, the Wall Street Journal reported.

"We anticipate that this plan will be confirmed later this year and greatly appreciate all parties' efforts to get to this point," USA Gymnastics said in a statement to the Times.

If you are a survivor of sexual assault, you can call the National Sexual Assault Hotline at 800.656.HOPE (4673) or visit their website to receive confidential support.