USA Gymnastics and abuse victims propose a $  425 million settlement in bankruptcy court

USA Gymnastics is proposing a $ 425 million settlement with sexual abuse victims as part of a reorganization plan submitted jointly with a court-appointed Committee of Sexual Abuse survivors amid bankruptcy proceedings.

USAG filed for bankruptcy in 2018 as the organization struggled to recover from the Larry Nassar sexual abuse scandal.
      The plan filed Tuesday in US Bankruptcy Court for the Southern District of Indiana details the suggested amount of money to be paid by insurers for USAG and the US Olympic and Paralympic Committee as well as by the insurer for former owners of the Karolyi Ranch.
        Marta and Bela Karolyi ran the now-closed gymnastic training location in Texas, one location where authorities say Nassar assaulted his young victims as they would train for major competitions including the Olympics. The Karolyis have not been criminally charged.
          Nassar, a former USA Gymnastics physician, was sentenced in January to 40 至 175 years in prison after he pleaded guilty to seven counts of sexual misconduct and is in a federal prison, not eligible for release until 2069.
          Insurers will have to accept this settlement for it to go forward as a full settlement.
          Once agreed upon, a trust would be formed for the settlement money, according to court paperwork.
          Victims who do not join the settlement have the option to pursue litigation on their own, the document stipulates.
          Objections to the settlement are due by September 29.
          The next hearing is on October 4.
          CNN has reached out to USAG and the US Olympic and Paralympic Committee for comment.
            CNN has also reached out to a lawyer who represents hundreds of Nassar victims.
            Any settlement agreement is not an admission of liability by USAG, USOPC or the Karolyis, the document states.

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