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Rob Kugler Quoted on USA Gymnastics Bankruptcy Case in USA Today

In the News
03.05.2020

Bankruptcy and Creditors’ Rights Partner Rob Kugler was recently quoted in USA Today, commenting on the matter of third party defendants in the USA Gymnastics bankruptcy case.

Sexual abuse survivors in the case made it clear that they will not accept a settlement offer from USA Gymnastics if it releases the U.S. Olympic and Paralympic Committee (USOPC) from making significant financial contributions. While the release of third party defendants is not uncommon in bankruptcy cases involving lawsuits, they are rarely granted without some form of an exchange.

“The law generally requires if a third party is going to get released, you have to make a substantial contribution in exchange for that release. You don’t just get it for free,” said Rob.

Rob goes on to note that it does not appear any type of exchange has been made yet, with USOPC asserting that the only money it must offer for a settlement is through its insurance coverage.

Rob is a leader in the representation of survivors of sexual abuse in enforcing their claims in bankruptcy. Rob secured the largest ever recovery in a catholic diocese bankruptcy in the Archdiocese of St. Paul and Minneapolis case ($210 million). Additionally, Rob has represented survivor committees in the bankruptcy cases of the Crosier Order, the Diocese of Duluth, the Diocese of New Ulm, the Diocese of Winona/Rochester and the Archdiocese of Agaña (Guam).

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