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Larry Nassar Victims Reach $380 Million Payment With USA Gymnastics, US Olympic Committee and Insurers

Judge Robyn L. Moberly of the United States Bankruptcy Court for the Southern District of Indiana formally approved the settlement in court Monday.

“This plan has been overwhelmingly accepted by all parties to this bankruptcy. The court has certainly found it to be viable,” Moberly said.

USA Gymnastics said in a statement that the deal, which also includes non-monetary commitments focused on athlete safety and health, will allow it to exit bankruptcy by the end of 2021.

“USA Gymnastics is deeply sorry for the hurt and pain that Survivors have suffered as a result of this organization’s actions and shutdown,” said USAG President and CEO Li Li Leung. in a statement. “The Reorganization Plan that we jointly submit reflects our responsibility to the past and our commitment to the future.

“Individually and collectively, the Survivors have come forward with courage to advocate for lasting change in the sport. We are committed to working with them and with the fitness community as a whole. tools, to ensure that we continue to prioritize the safety, health and well-being of all our athletes and communities.”

This is the second nine-figure settlement for victims of Nassar abuse. In 2018, Michigan State University agreed to pay 500 million dollars to settle the lawsuits of 332 victims of Nassar.
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Nassar, a longtime physician on the USA Gymnastics team and Michigan State University, is serving a 60-year sentence in federal prison on child pornography. He was also convicted sentences of 40 to 175 years in state prison in Michigan after pleading guilty to seven counts of criminal sex conduct.

As part of the plea agreement, he admitted to using his trusted medical position to attack and harass girls under the guise of medical treatment for about two decades.

At him sentencing in Michigan in 2018, more than 150 women – including Olympic gold medalists Aly Raisman and McKayla Maroney – openly told the court that he sexually abused them. Some women said they had reported abuse before, but the system of authorities, including USA Gymnastics, the US Olympic and Paralympic Committee and Michigan State University, did not consider the relationship. their hearts seriously.
In addition, the Inspector General of the Ministry of Justice released a scathing report in July saying that that senior FBI Indianapolis Field Office officials failed to respond to Nassar’s allegations with the utmost seriousness and urgency, made many fundamental errors in their response, and violated multiple FBI policies in carrying out their operations. their investigation.

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John C. Manly, the lead attorney representing Nassar’s victims, released a statement Monday confirming the “historic” settlement.

“Survivors have now received a total of $880 million in compensation for their pain and suffering at the hands of this monster and the organizations that supported him, Michigan State University , USA Gymnastics and the United States Olympic and Paralympic Committees, these organizations have spent more than $100 million on corporate attorneys to evade their legal and ethical responsibilities.

“We prevailed for one simple reason, which is the courage and perseverance of the survivors. These brave women have recounted their abuse publicly, in countless ways. media interviews, so that no more child is forced to be subjected to physical, emotional or sexual abuse in pursuit of their Dream Breeds.”

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Manly also called for criminal prosecution of FBI officials who failed to investigate Nassar and the Olympic and Gymnastics officials who “co-conspired” with them.

“We will continue to pursue justice on behalf of the hundreds of girls and young women who have suffered sexual abuse as a direct result of their obstruction of justice,” he said.

The executive director of the US Olympic and Paralympic Committee, Sarah Hirshland, also released a statement about the agreement.

“We are grateful to have reached a resolution with the athlete survivors. We have our deepest respect for the immense strength and courage these women have shown. . We recognize our role in failing to protect these athletes and we apologize for the profound trauma they have suffered,” her statement said.

“Achieving a financial resolution is an extremely important part of the transformation that is taking place within our organization. In addition to actively participating in mediation and contributing to settlement, USOPC has issued guidelines far-reaching reforms to our governance structure to combat sexual abuse, support athletes and survivors, and strengthen protections for athletes against all forms of abuse. we are making Olympic and Paralympic sports safe for all we do. This is our commitment, today and every day,” it said.

CNN’s Homero De la Fuente contributed to this report.

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