Abuse Claimants Challenge USA Gymnastics' Bankruptcy Settlement

Pair of claimants seek to bring state court lawsuits against USAG and former coach despite bankruptcy resolution.

Published on Feb. 9, 2026

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Two sex abuse claimants are challenging USA Gymnastics' efforts to block their state court lawsuits against a coach and the organization, arguing they did not receive adequate notice of the claims bar date during USAG's 2021 bankruptcy proceedings that resolved widespread claims of abuse by former team doctor Larry Nassar.

Why it matters

This case highlights ongoing legal battles over the USA Gymnastics bankruptcy settlement, which aimed to resolve thousands of abuse claims but left some claimants feeling their voices were not heard. The ability of individual claimants to pursue state court actions could undermine the finality of the bankruptcy plan.

The details

Lawyers for Hailey Gear and Finley Weldon said in a Feb. 6 court filing that they should be permitted to pursue their Iowa state court lawsuits against USAG and their former coach Sean Gardner, who they claim abused them while they were gymnasts. The claimants argue they did not receive proper notice of the claims bar date during USAG's 2021 bankruptcy case, which approved a settlement resolving widespread Nassar abuse claims.

  • USAG secured court approval of its bankruptcy plan and settlement in 2021.
  • Gear and Weldon filed their challenge to the bankruptcy resolution on Feb. 6, 2026.

The players

Hailey Gear

A sex abuse claimant seeking to bring a state court lawsuit against USA Gymnastics and a former coach.

Finley Weldon

A sex abuse claimant seeking to bring a state court lawsuit against USA Gymnastics and a former coach.

Sean Gardner

A former USA Gymnastics coach accused of abusing Gear and Weldon.

USA Gymnastics (USAG)

The national governing body for gymnastics in the United States that filed for bankruptcy in 2021 to resolve widespread claims of sex abuse by former team doctor Larry Nassar.

Larry Nassar

The former USA Gymnastics team doctor convicted of sexually abusing hundreds of gymnasts over many years.

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What they’re saying

“We must ensure that all abuse survivors have the opportunity to have their voices heard and their claims fully addressed, even if they did not receive proper notice during the bankruptcy proceedings.”

— Hailey Gear (Bloomberg Law)

“The bankruptcy settlement should not prevent survivors from seeking justice through the courts, especially when the process failed to adequately notify all claimants.”

— Finley Weldon (Bloomberg Law)

What’s next

The court will need to determine whether Gear and Weldon's state court lawsuits can proceed despite the finality of the USAG bankruptcy settlement.

The takeaway

This case highlights the ongoing legal battles over the USA Gymnastics bankruptcy settlement, which aimed to resolve thousands of abuse claims but left some claimants feeling their voices were not heard. The ability of individual claimants to pursue state court actions could undermine the finality of the bankruptcy plan, raising questions about the fairness and transparency of the overall resolution process.