USA Gymnastics cleared another hurdle in its bankruptcy plan that would pay $400 million to sexual abuse survivors of team doctor Larry Nassar and insurance companies, Courthouse News reported. Bankruptcy Judge Robyn Moberly approved the organization's disclosure statement yesterday in the third hearing this month on the matter, after all objections to the plan or the method of approval were either resolved or held to be brought forth at a later date. “Based on the fact that there are no objections at this point to the disclosure statement or the proposed procedures for solicitation, we will approve both of them as motions,” Judge Moberly said. The proposed plan is a joint effort between USA Gymnastics and a court-appointed committee that represents sexual abuse survivors and aims to settle current and future claims related to Nassar and others connected to the organization who abused young girls. Under the plan, the more than 500 abuse survivors would receive payments from the settlement fund, and a reserve fund would be created to set aside money for future claims that surface over the next five years. The $400 million figure is far greater than the previously rejected offer of $215 million and less than the $500 million Nassar’s former employer, Michigan State University, agreed to pay survivors. Besides monetary compensation, the proposed plan also offers a pathway for USA Gymnastics to make itself a safer organization going forward. This includes a new "safe sport policy" to establish safety standards and accountability for its gymnastics clubs. The plan also calls for a streamlined process for athletes to report violations of the organization's policies, which includes an online portal where reports of misconduct can be filed. Now that the disclosure statement has been approved, creditors of USA Gymnastics will begin voting on the plan, with ballots due by Nov. 29. A report on the vote would be issued on Dec. 2, with final confirmation hearings set for Dec. 13 and 14.
