The governing body for American gymnastics filed for bankruptcy Wednesday, a dramatic step for an embattled organization facing mounting legal and financial challenges stemming from decadeslong sexual abuse by the national team’s former doctor, WSJ Pro Bankruptcy reported. The chapter 11 filing, made by USA Gymnastics in Indianapolis federal court, has far-reaching implications for victims of the former doctor, Larry Nassar, and the U.S. national team, whose governance is in disarray with less than two years to go before the 2020 Tokyo Olympics. The filing puts an automatic stop — perhaps permanently, depending on a judge’s ruling — to depositions and discovery in lawsuits filed by Nassar’s victims. It also could disrupt formal efforts to revoke USA Gymnastics’ status as the sport’s official governing body, a process the U.S. Olympic Committee initiated last month.
