USA Gymnastics and the U.S. Olympic and Paralympic Committee have agreed to pay a $380 million settlement to victims of former USA Gymnastics doctor Larry Nassar. The organizations also agreed to structural changes to prevent further abuse, including reforms to misconduct reporting.
For decades, Nassar sexually abused hundreds of young girls and women athletes while providing medical treatment. He is now serving up to 175 years in prison.
Back in September, victims of Nassar’s abuse, including Olympic gold medalist Simone Biles, testified before the U.S. Senate about the FBI’s mishandling of reports against Nassar for months.
“I believe without a doubt that the circumstances that led to my abuse and allowed it to continue are directly the result of the fact that the organizations created by Congress to oversee and protect me as an athlete, USA Gymnastics and the United States Olympic and Paralympic Committees failed to do their jobs,” Biles said then, according to CBS News.
The settlement comes after USA Gymnastics filed for bankruptcy, following the pile up of lawsuits following Nassar’s guilty plea in 2018. The settlement, originally proposed as $425 million in August, will be mostly paid by insurers, according to CNN. The U.S. Olympic and Paralympic Committee will pay around $34.4 million as well as loan USA Gymnastics $6.1 million for the settlement.
“This historic settlement ends another chapter in the Larry Nassar scandal,” John Manly, an attorney with the law firm that represents more than 100 victims of Nassar’s abuse, said Monday. “Survivors have now received a total of $880 million in compensation for their pain and suffering at the hands of this monster and the institutions who enabled him, Michigan State University, USA Gymnastics and the US Olympic and Paralympic Committee.”
Michigan State University, where Nassar was also a doctor, agreed to pay $500 million back in 2018 to settle lawsuits brought by over 300 of his victims.
From CNN:
The $380 million settlement also includes a provision to dedicate at least one seat on the USA Gymnastics Board of Directors to a survivor of Nassar’s sexual abuse, according to court documents.
Additionally, at least one member of the organization’s two committees dedicated to safe sports and athlete wellness will be reserved for a Nassar abuse survivor. A process to select individuals to fill these positions is still being worked on, but USA Gymnastics has committed to the provisions, the documents state.
The nonmonetary terms of the settlement also include reforms to the organization’s training and practices regarding athlete safety and proper reporting of misconduct.
Rachael Denhollander, the first woman to publicly accuse Nassar of sexual abuse, tweeted Monday that she is “proud of the nonmonetary reform commitments in particular” and said she is “eager to see these changes through.”
“This chapter has closed, but the real work of restoration is just beginning,” Denhollander said.
“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 in a statement, according to CNN. “The Plan of Reorganization that we jointly filed reflects our own accountability to the past and our commitment to the future.