According to the Wall Street Journal, USA Gymnastics has filed for Chapter 11 bankruptcy in the wake of snowballing legal and financial woes.
The Journal reported the embattled organization had been struggling to reorganize after hundreds of plaintiffs filed lawsuits against it in the fallout of the Larry Nasser sexual abuse scandal.
The Journal said the filing would give some temporary financial relief to USA Gymnastics as the bankruptcy process commences, but the future of its obligations to Nassar’s victims and as the governing body of the sport remain unclear.
