Sex abuse survivors settle with USAG and Olympic Committee for $380M

Gymnasts who suffered abuse for years by a disgraced Olympic doctor struck a $380 million settlement with the U.S. Olympic & Paralympic Committee and USA Gymnastics, which was approved by an Indiana bankruptcy court Monday.

The settlement came after more than three years of mediation between the survivors and the organizations, as well as the insurers for both entities. U.S. Bankruptcy Judge Robyn L. Moberly of the Southern District of Indiana blessed the settlement, which provides not just monetary compensation but commitments from USA Gymnastics to focus on reforms to bolster athlete safety and wellness. The organization agreed to add at least one abuse survivor to its board of directors. In re: USA Gymnastics, 18-09103-RLM-11 (S.D. Ind., filed Dec. 5, 2018)

"USA Gymnastics is deeply sorry for the trauma and pain that Survivors have endured as a result of this organization's actions and inactions," USAG President and CEO Li Li Leung said. "The Plan of Reorganization that we jointly filed reflects our own accountability to the past and our commitment to the future.

"Individually and collectively, Survivors have stepped forward with bravery to advocate for enduring change in this sport. We are committed to working with them, and with the entire gymnastics community, to ensure that we continue to prioritize the safety, health, and wellness of our athletes and community above all else."

USA Gymnastics filed for bankruptcy in December 2018 after facing lawsuits from more than 350 victims who alleged they were molested by Dr. Larry Nassar. Olympic gold medalists who said they suffered abuse include Simone Biles, Aly Raisman, McKayla Maroney and Gabby Douglas.

"This historic settlement was reached through the bravery and grace and courage of hundreds of survivors of sexual abuse at the hands of Larry Nassar. The Olympic Committee and USAG had implemented a 'money and medals' culture that emphasized winning medals and securing sponsorship dollars over the safety of their own athletes and our clients," said Jesse M. Creed, an attorney at Panish Shea Boyle Ravipudi LLP, who represents four gymnasts with Kevin R. Boyle.

"Holding USOPC and USAG accountable for their actions and demanding change will have an impact for generations of gymnasts to come."

Boyle and Creed were joined by Michelle Simpson Tuegel of Simpson Tuegel Law Firm and Mo Aziz of Abraham, Watkins, Nichols, Sorrels, Agosto, Ziz and Stoger.

"We are honored and proud to represent these brave athletes whose advocacy will bring institutional change benefiting future gymnasts," Boyle said. "Our sincere hope is that the commitments by USAG and the USOPC will transform the historically toxic culture of these organizations."

USAG is represented in the bankruptcy matter by Catherine L. Steege, Dean N. Panos, Melissa M. Root and Adam T. Swinger of Jenner & Block LLP.

James I. Stang and Ilan D. Scharf of Pachulski Stang Ziehl & Jones and Deborah J. Caruso of Rubin & Levin served as counsel for the survivors' committee.

Earlier this year, the four gymnasts represented by Boyle and Creed won their bid to reopen litigation in their lawsuits pending in Northern and Southern California federal courts against the Olympic Committee after a two-year hiatus. Baker v. Nassar, 5:19-CV-110 (N.D. Cal., filed Jan. 8, 2019) The plaintiffs agreed to a voluntary pause in the case in spring of 2019. But with no settlement in sight, Boyle and Creed fought to withdraw from the stay as to the Olympic Committee, which never filed for bankruptcy. Tasha Schwikert-Warren v. Nassar, 2:19-cv-161 (C.D. Cal., filed Jan. 8, 2019)

Schwikert-Warren will be part of a Restorative Justice Task Force that will be formed as a condition of the settlement. According to the bankruptcy plan, a trust for the survivors will be contributed by insurers, the USOPC and USA Gymnastics. The USAG is now expected to emerge from bankruptcy in the coming weeks.