December 6, 2021

Survivors approve USA Gymnastics settlement proposal; U.S. trustee files limited objection

Former gymnasts Sarah Klein, Marcia Frederick, Rachael Denhollander and Tasha Schwikert respond to questions after a meeting with USAG creditors in 2019.  - Samantha Horton/IPB News

Former gymnasts Sarah Klein, Marcia Frederick, Rachael Denhollander and Tasha Schwikert respond to questions after a meeting with USAG creditors in 2019.

Samantha Horton/IPB News

Almost three years to the day after USA Gymnastics (USAG) announced it had filed for bankruptcy, a majority of survivors of sexual abuse in the sport voted in favor of a proposed settlement plan.

Of the 505 ballots from survivors, 476 approved the settlement. The other 29 were deemed invalid due to the ballot not being signed and/or a duplicate conflicting ballot. Seven survivors who filed after the claims bar date also voted – five accepted and two rejected the settlement.

The U.S. trustee in the case filed a limited objection to the plan on Friday that raises legal questions about the feasibility of the proposed settlement. At least one insurer also filed an objection to the plan. 

The roughly $400 million settlement plan was announced a few months ago after USAG and the Survivors’ Committee came to an initial agreement.

USAG filed for bankruptcy in 2018 after hundreds of gymnasts sued over sexual abuse in the sport.

A hearing on confirmation of the plan is scheduled for Dec. 13-14 in Indianapolis.

Contact reporter Samantha at shorton@wfyi.org or follow her on Twitter at @SamHorton5.

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