USA Gymnastics Files For Chapter 11 Bankruptcy Amid Sex Abuse Scandals - uSports.org

Log In

  • Home  /
  • News   / Daily Digest   /
  • USA Gymnastics Files For Chapter 11 Bankruptcy Amid Sex Abuse Scandals
USA Gymnastics Files For Chapter 11 Bankruptcy Amid Sex Abuse Scandals Full view

RIO DE JANEIRO, BRAZIL - AUGUST 09: (R to L) Gold Medalists Simone Biles, Gabrielle Douglas, Lauren Hernandez, Madison Kocian and Alexandra Raisman of the United States stand on the podium for the national anthem at the medal ceremony for the Artistic Gymnastics Women's Team Final on Day 4 of the Rio 2016 Olympic Games at the Rio Olympic Arena on August 9, 2016 in Rio de Janeiro, Brazil. (Photo by Alex Livesey/Getty Images)

USA Gymnastics Files For Chapter 11 Bankruptcy Amid Sex Abuse Scandals

The heinous crimes of former USA Gymnastics trainer Larry Nassar continue to devastate the organization and the families and victims involved after the national governing body for gymnastics filed for chapter 11 bankruptcy on Wednesday.

Bankruptcy Is USAG Solution To Sex Abuse Fallout

Civil lawsuits related to the sexual abuse case of Nassar have constricted USA Gymnastics. Filing for bankruptcy will help to expedite the process of handling these lawsuits, according to USAG. The bankruptcy, according to USAG, is not in relation to the available money for the victims, which they said is provided by insurance money. The organization is adamant in assuring that there are no intentions to liquidate, but rather to “reorganize” amid the fallout of the abuse. USAG is facing roughly 100 lawsuits from some 350 athletes concerning the abuse and USAG’s handling of it.

The bankruptcy process will effectively halt all pending litigation against USAG, allowing for a period of recollection that will allow athletes to more thoroughly communicate with the organization ahead of any legal processions. Several of the cases cite USAG as irresponsible in its efforts to address and report the abuse. Building a foundation of trust between USAG and its athletes is the primary objective following the filing, along with a revamping of the organization’s public image.

30 SPORTS FIGURES WHO DIED IN 2018 – TRIBUTE SLIDESHOW

Several former USAG athletes have been critical of the organization’s handling of the abuse, and see no promise in the potential ability to right the ship. Former team USA gymnast and board member Jessica Howard, one of the first victims to speak out about the abuse, says that she doesn’t see how anybody can trust USAG to run the sport of gymnastics. “USA Gymnastics has made absolutely no changes that have affected victims, survivors,” Howard said. “I don’t think the sport will survive at the highest levels if we don’t get this right.”

Attorney John Manly, who represents almost 200 of Nassar’s victims, has called the bankruptcy a “delay tactic” for the organization, which has botched the recovery process and saw two presidents resign consequentially. USAG is currently in search for a new CEO.

Chat With uSports On Facebook! Get the latest news and interviews delivered directly to your Messenger!

Featured articles on uInterview.com

Written by Red Young

Latest News

UEFA Super Cup 2020: Javi Martinez Scores Bayern’s Winner Against Sevilla

UEFA Super Cup 2020: Javi Martinez Scores Bayern’s Winner Against Sevilla

Bayern Munich’s Javi Martinez came on during extra time to score his side’s winner against Spanish club Sevilla. The UEFA…

Trump Tries To Take Credit For Pac-12 Return Though Teams Say He Did Little

Trump Tries To Take Credit For Pac-12 Return Though Teams Say He Did Little

This week, the Pac-12 held an unanimous vote by university officials to allow Pac-12 football teams to begin seven-game, conference-only…

Fitzmagic Makes An Appearance As Dolphins Dominate Jaguars Led By Ryan Fitzpatrick

Fitzmagic Makes An Appearance As Dolphins Dominate Jaguars Led By Ryan Fitzpatrick

Ryan Fitzpatrick is the greatest example of a feast or famine quarterback that we have seen in the NFL in a…

WATCH: Jaguars’ Tackle Cam Robinson Gets Questionable Ejection During TNF Game

WATCH: Jaguars’ Tackle Cam Robinson Gets Questionable Ejection During TNF Game

During Thursday night’s game against the Miami Dolphins, Jacksonville Jaguars guard and former second-round pick Cam Robinson was ejected for…

Lakers Go Up 3-1 On Nuggets After Anthony Davis & LeBron James Dominate

Lakers Go Up 3-1 On Nuggets After Anthony Davis & LeBron James Dominate

These are familiar waters for the Denver Nuggets. After being the only team in NBA history to come back from…

UFC Founder Dana White Backs Colby Covington After Calling BLM ‘Terrorists’

UFC Founder Dana White Backs Colby Covington After Calling BLM ‘Terrorists’

The UFC’s most infamous heel and Trump supporter Colby Covington stirred up controversy last week for his post-fight comments after his…

Luis Suarez Completes Atletico Madrid Transfer

Luis Suarez Completes Atletico Madrid Transfer

Uruguay international Luis Suarez completed a long-awaited free transfer to La Liga side and FC Barcelona rivals Atletico Madrid. Atletico…

LeBron James & Lakers ‘Devastated’ By Decision Not To Charge Officers In Breonna Taylor Killing

LeBron James & Lakers ‘Devastated’ By Decision Not To Charge Officers In Breonna Taylor Killing

A main theme of the NBA’s restart has been the call for social justice and accountability for police brutality against…

WATCH: Rays Clinch AL East For First Time In Ten Years

WATCH: Rays Clinch AL East For First Time In Ten Years

On Wednesday, the Tampa Bay Rays beat the New York Mets 8-5, to improve to 37-20 and, more importantly, clinch…

Chicago Bulls Hire Billy Donovan As Head Coach

Chicago Bulls Hire Billy Donovan As Head Coach

Earlier this year, the Chicago Bulls dismissed head coach Jim Boylen signaling a shift in the organizations mentality after Boylen’s disappointing stint…

Chicago Bears Legend Gale Sayers Dies At 77

Chicago Bears Legend Gale Sayers Dies At 77

On Wednesday, the NFL Hall of Fame confirmed that Chicago Bears legendary running back Gayle Sayers has died at 77.…

UEFA Men’s Player Of The Year Shortlist: Lionel Messi & Cristiano Ronaldo Miss Out On Top 3

UEFA Men’s Player Of The Year Shortlist: Lionel Messi & Cristiano Ronaldo Miss Out On Top 3

The UEFA announced a top three shortlist for its 2019/2020 Men’s Player of the Year award which did not include…