USA Gymnastics filed a joint $425 million settlement proposal on Tuesday, potentially bringing years of litigation to an end.
The approval of the settlement, reached by the organization and hundreds of women who say they were abused by Larry Nassar, would bring the legal side of the case to an end. The proposal, which was put together by USA Gymnastics and the survivors’ committee, still needs to be approved by the survivors and any other creditors.
Additionally, USA Gymnastics and the U.S. Olympic and Paralympic Committee need to secure funds for the settlements from their insurers.
“After extensive discussions, this plan has been jointly proposed by USA Gymnastics and the Committee, and it is supported by many of the involved insurers,” USA Gymnastics said in a statement. “We anticipate that this plan will be confirmed later this year and greatly appreciate all parties’ efforts to get to this point.”
The $425 million sum is significantly higher than the $215 million settlement that USA Gymnastics and the USOPC put forward in February 2020. Survivors have been in mediation with the organization since it filed for bankruptcy in December 2018.
In order for the offer to move forward, at least half of the claimants who vote have to approve the agreement. The majority also needs to represent at least two-thirds of the monetary value of the settlement.
However, attorney John C. Manly, whose firm represents more than 200 victims, asserts that while the survivors committee supports the amount, there is still work that needs to be done.
“What this isn’t is a settlement. This is a proposed resolution that the Survivors Committee supports,” said Manly.
“Let me be clear, it’s not funded. There’s a lot of work left to be done before this is over.”
Additionally, survivors want to know that there will be mandatory changes to USA Gymnastics and the U.S. Olympic Committee, he said.
Votes must be in by Nov. 8 with a confirmation hearing scheduled for Dec. 8-9.