In what is seen by most as a temporary reprieve, USA Gymnastics has reportedly filed for bankruptcy protection in the aftermath of the Larry Nassar abuse scandal. In a statement, they revealed that they have filed Chapter 11 bankruptcy in Indiana in order to settle lawsuits with victims.

And while the intent seemed to be good on the outside, critics claim that USAG resorted to bankruptcy in an effort to put a lid on investigations which may, in turn, uncover the truth and other cases tied up to the Nassar scandal, Manila Bulletin Sports reported.

“It is a delay tactic designed to stop survivors from getting information through depositions and document requests. It is a cynical extension of USAG’s campaign to hide their participation in the Nassar scandal from Congress, the media and the public,” said John Manly, an attorney who represents many survivors of Nassar’s crimes.

This is the latest development tied up to USAG, which now finds itself fighting for survival. The United States Olympic Committee vowed to disband the organization for failing to reform after the Nassar abuse row.

GettyImages-1058287046 USA Gymnastics has filed for Chapter 11 Bankruptcy, a temporary shield in the face of multiple lawsuits tied up to the Larry Nassar abuse scanda. The offices of USA Gymnastics and the US Olympic Committee are seen on November 6, 2018 in Indianapolis, Indiana. The committee announced its intention to revoke USA Gymnastics' status as the national governing body in continuing fallout from the Dr. Larry Nassar scandal. Photo: Getty Images/ Aaron P. Bernstein

In addition, USAG has also been accused of covering up Nassar’s crimes. The former U.S. team doctor was sentenced to life in prison earlier this year after abusing nearly 250 athletes – including several individuals who were part of the gold-medal-winning teams of the 2012 and 2016 Olympics.

As it is, USA Gymnastics finds itself in quite a hole, although the new chair said that they will continue to serve the sport and hopefully settle legal wrangling with survivors.

“We’re not looking to close our doors. We absolutely will continue as a not-for-profit organization to serve our sport,” Kathryn Carson, the new chair of the USA Gymnastics board, said in a report from USA Today. “We are continuing to pursue all aspects of our current operating model and hope to maintain our NGB status.”

Apparently, the road ahead is expected to get tougher for USA Gymnastics. They have already lost all their major sponsors since the Nassar case broke out,  indicating that they may not have enough assets to pay plaintiffs in the lawsuits they are facing. If so, this means they will have to rely on its insurers to settle the claims.

From there, the worth of the claims falls at the hands of the bankruptcy judge. In financial statements released last month, USA Gymnastics estimated it would cost between $75 million and $100 million to settle the lawsuits.

Again, the bankruptcy recourse is seen as a temporary solution. How long it will hold up remains to be seen.