Stay lifted for gymnasts in sexual assault case against US Olympic Committee

Four gymnastics stars who suffered sexual abuse won their bid to reopen litigation against the U.S. Olympic Committee, lifting the two-year stay issued by a bankruptcy court.

Two federal judges, U.S. Judge Josephine L. Staton of the Central District of California, who is presiding over three civil cases, and U.S. Judge Lucy H. Koh of the Northern District of California who is presiding over one, granted the plaintiffs' request to resume proceedings. Kennedy Baker v. Larry Nassar, 5:19-CV-000110 (N.D. Cal., filed Jan. 8, 2019)

Panish Shea & Boyle LLP's Kevin Boyle and Jesse M. Creed sued USA Gymnastics and the U.S. Olympic Committee in 2018 on behalf of several women who were assaulted for years under Dr. Larry Nassar's care. Nassar is serving a 120-year sentence in federal prison. Jane Doe v. Lawrence Nassar et al., 2:19-CV-167 (C.D. Cal., filed Jan. 8, 2019)

USA Gymnastics filed for Chapter 11 protection in Indiana in 2018. The plaintiffs agreed to a voluntary stay in the case in spring 2019. With no settlement in sight after nearly two years, Boyle and Creed fought to withdraw from stay in October as to the U.S. Olympic Committee, which never filed for bankruptcy protection. Tasha Shwikert-Warren v. Nassar et al., 2:19-CV-161 (C.D. Cal., filed Jan. 8, 2019)

"Our clients want to seek justice and truth, and it's time for the Olympic Committee to be held accountable for the crimes that were committed against our clients," Creed said. Jordan Cobbs v. Nassar, et al., 2:19-CV-171 (C.D. Cal., filed Jan. 8, 2019)

"The Olympic Committee wants the benefits of bankruptcy protection without ever filing for one," Boyle said. "We believe they are a primary actor in our client's claims."

Creed pointed out USA Gymnastics said they filed for bankruptcy to speed up payments to victims. However, it's been two years, and the average Chapter 11 duration is typically 211 days, Creed said.

The Olympic Committee opposed the plaintiffs' request, contending the Indiana bankruptcy judge ordered a settlement conference in the near future. In court papers, Mitchell A. Kamin, partner at Covington & Burling LLP who represents the Committee, argued that lifting the stay would impact the settlement conference "by triggering a race to the courthouse amongst the more than 500 other plaintiffs who have asserted claims in the bankruptcy proceeding."