'How much is a little girl worth?' Survivors of sex abuser Larry Nassar angry at $215 million offer from USA Gymnastics

Proposed settlement described as 'unworkable' and 'unconscionable'

USA Gymnastics (USAG) has offered to pay $215 million to the survivors of sex abuser Larry Nassar to settle their legal claims.

Initial reaction from Nasser’s victims has been negative, with Rachel Denhollander, who first brought Nassar’s abuse to public attention, saying on Twitter: “How much is a little girl worth? Apparently far less than the damage she's incurred.”

She added: “I am beyond disappointed. Again.”

John C Manly, a lawyer who represents more than 200 athletes who accused Nassar, described the offer as “not just unworkable, it is unconscionable”.

.Among those athletes represented by Mr Manly are Olympic gymnasts Aly Raisman and McKayla Maroney.

The offer comes as part of a bankruptcy plan filed by USAG with the US Bankruptcy Court for the Southern District of Indiana.

Survivors are offered one of two options, either that they, as a group, vote to accept $215 million to settle all of their claims, or that they vote to continue to pursue their lawsuits and collect any judgments from insurance policies available to USAG.

Whichever option is chosen will apply to the entire class of survivors.

In addition, the insurers for Twistars Gymnastics Club near Lansing, Michigan, where Nassar abused girls between 2009 and 2011, will contribute an additional $2.125 million.

Li Li Leung, president and CEO of USA Gymnastics, said in a statement: “While we do not yet have an agreement with the Committee representing the survivors, we still hope to reach an agreement. USA Gymnastics filed its proposed plan to communicate to the survivor class the two options that are currently available based on the amount of money USA Gymnastics’ insurers are willing to pay into a settlement fund.”

Ms Leung added: “This plan allows for ongoing negotiations among the parties and we are hopeful that continued discussions will lead to an agreement that is supported by all parties in the case.”

The plan includes benchmarks that obligate USAG to continue to enhance athlete safety and provides for payments to other creditors.

Kathryn Carson, board chair of USAG, says: “Our strong preference remains to achieve a fully consensual settlement plan and we intend to continue negotiations with the survivors and our insurance carriers to reach that goal.”

Under the plan, the organisation will continue its shift to be more athlete-centric. Recent initiatives have included the creation of a new role responsible for athlete health and wellness, including sports medicine, psychology and nutrition services, and athlete-development programmes.

In addition, USAG now has mandatory reporting and policies to empower athletes and guide athlete-coach interactions, as well as new educational initiatives focused on athlete safety.

A statement from USAG says that it intends to confirm the plan before mid-year, but hopes that a settlement will be reached before then that can be incorporated into an amended plan.

Referring to the specifics of the plan, Ms Denhollander said in her tweet: “Noticeably absent from this plan is any of the specific reforms we've publicly asked for, for years.”

Mr Manly said in a statement: “This proposed plan does not include the critical structural changes necessary to ensure the safety of girls moving forward, nor does it appropriately address the myriad physical and emotional challenges the victims face as a result of these crimes.”

He adds: “Most disturbingly, this proposed plan attempts to absolve USOPC [the US Olympic & Paralympic Committee] of any responsibility for these crimes which were committed under its watch.”

The Associated Press reports USOPC chief marketing and communications officer Luella Chavez D’Angelo as saying that USOPC “remains committed to continuing to work with the survivor community, their lawyers, USAG and responsible insurers to achieve justice for the survivors in an expedited manner".

In May 2018 Michigan State University, where Nassar worked for decades, agreed a $500 million settlement with 300 women and girls who claimed to have been assaulted by him.