Bankruptcy Judge Robyn L. Moberly this week criticized a proposed USA Gymnastics financial settlement with the survivors of Larry Nassar that would release the U.S. Olympic and Paralympic Committee from all current and future claims related to Nassar’s sexual abuse of young athletes, the Orange County (Calif.) Register reported. Judge Moberly at a hearing on Monday expressed her displeasure with the proposed settlement that would release the USOPC from liability without paying anything to survivors. USA Gymnastics, facing hundreds of lawsuit related to the sexual abuse of Nassar, the former U.S. Olympic and women’s national team physician, Don Peters, a former U.S. Olympic team coach, and Marvin Sharp, a former U.S. national team coach, and others, filed for protection under chapter 11 in U.S. Bankruptcy in December 2018.The USOPC is named in many of those suits. USA Gymnastics has proposed $217-million settlement is part of a reorganization plan filed with the court earlier this year. A 77-page disclosure statement related to the settlement proposal states that if the 517 Nassar survivors would agree to release “any and all claims arising from or related to Abuse Claims or Future Claims.” In addition to the USOPC, the settlement proposal also calls for the release of former USA Gymnastics CEO Steve Penny, Peters, former U.S. national team directors Bela and Martha Karolyi, five Karolyi-related businesses, 2012 Olympic coach John Geddert, former USA Gymnastics senior vice president Rhonda Faehn, former USA Gymnastics board chairman Paul Parilla, former USA Gymnastics president Bob Colarossi, former USA Gymnastics national teams manager Amy White, former USA Gymnastics sports medicine official Debra Van Horn and the All Olympia Gymnastics Center in Southern California.
