USA Gymnastics and a committee behind survivors of former U.S. Olympic, national team physician and ex-MSU doctor Larry Nassar filed a proposed $400 million settlement agreement, according to the Orange County Register.
The $400,659,129 agreement between USA Gymnastics and survivors has been in deliberation since 2018, but this settlement could put an end to years of litigation for USA Gymnastics.
While less than the $500 million MSU settled back in May 2018, this sum is significantly higher than the $215 million settlement USA Gymnastics and the United States Olympic and Paralympic Committee proposed in January 2020.
MSU reached a $500 million settlement with survivors in May of 2018. The settlement terms stated that $425 million would be paid to current claimants, while $75 million would be set aside in a fund for any future claimants alleging abuse against Nassar. MSU settlements to survivors reached $498 million in January 2020.
If accepted, former USA Gymnastics CEO Steve Penny, former National Team Directors Bela and Martha Karolyi, former USA Gymnastics Vice President Rhonda Faehn and former Board Chairman Paul Parilla would all be released from further litigation.
The proposal comes almost five years after the first public allegations against Nassar and three years since USA Gymnastics filed for bankruptcy.
The settlement has yet to be fully funded. Insurance carriers for USA Gymnastics, the USOPC and the Karolysis have only committed to $292,332,331.
There is a two-step voting process for claimants to determine whether the offer will be accepted.
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