A plan filed Tuesday by USA Gymnastics and victims in U.S. Bankruptcy Court for the Southern District of Indiana details the suggested amount of money to be paid out in connection to disgraced former USAG doctor Larry Nassar’s sexual abuse conviction.
According to the Associated Press, USAG and hundreds of women who claim they were abused by the former national team doctor or others affiliated with the national governing body filed a joint $425 million settlement proposal that could put an end to years of litigation.
“After extensive discussions, this plan has been jointly proposed by USAG and the Committee, and it is supported by many of the involved insurers,” USAG said in a statement, the AP reported. “We anticipate that this plan will be confirmed later this year and greatly appreciate all parties’ efforts to get to this point.”
The Survivors Committee and USAG put the proposal together, though it still needs to be approved by survivors and other creditors.
The $425 million figure posed this week is significantly higher than the $215 million settlement offer USAG and the U.S. Olympic and Paralympic Committee put together in February 2020.
In May 2018, Michigan State University — where Nassar worked — agreed to pay $500 million to more than 300 women and girls who said they were abused by Nassar, according to the AP.
For claimants to approve the officer, at least half of them who vote have to approve of the agreement, and the majority needs to represent at least two-thirds of the monetary value of the settlement.
Survivors have been in mediation with USAG since the organization filed for bankruptcy in December 2018.
Seven-time Olympic medalist Simone Biles and six-time Olympic medalist Aly Raisman are among hundreds of athletes who have come forward over the last five years saying Nassar abused them under the guise of treatment.
Nassar was sentenced to 40-to-175 years in prison after he pleaded guilty to seven counts of sexual misconduct and is in a federal prison, CNN reported. He’s not eligible for release until 2069.
Votes must be in by Nov. 8, with any written objections to the proposal due by Nov. 19, the AP reported. A confirmation hearing is scheduled for Dec. 8-9.