(ATR) Bela and Martha Karolyi are suing the U.S. Olympic Committee for more than $1 million.
The gymnastics legends say that the USOC and USA Gymnastics reneged on a contract to buy part of their ranch in Texas. The 3,000 acre compound has served as the base of operations for the Karolyis since the 1980s and more recently as the national training center for USA Gymnastics.
A contract to purchase a portion of the property for $3 million was executed in 2016 by USA Gymnastics, negotiated by ex CEO Steve Penny. But one year later the Karolyis were notified that USA Gymnastics would not go through with the sale.
At that time USA Gymnastics was dealing with the consequences of allegations of sexual abuse against former team doctor Larry Nassar. The allegations included charges that Nassar molested gymnasts as part of the treatment he gave to athletes during their training at the Karolyi Ranch.
Nassar, 54, has been convicted and sentenced to essentially a life sentence for the abuse charges. Nassar is now believed to have assaulted hundreds of patients across decades.
The Karolyis deny knowledge of any misdeeds by Nassar while he was at the USA Gymnastics training camps.
"The Karolyis never had any knowledge of Larry Nassar's reprehensible conduct and would have reported such conduct had they learned of it or if there had been any suspicion," the lawsuit says.
The Karolyis say they learned only after the the 2016 Summer Olympics that Nassar was suspected of abusing gymnasts under his care.
The Karolyis also reject efforts by the USOC asking them to indemnify the USOC in any legal actions that involve allegations against the USOC for crimes that may have taken place at the ranch.
"USOC's request ... is merely USOC and USAG's attempt to sacrifice the Karolyis ... to shift blame off of themselves," the lawsuit says.
The Karolyis say that USA Gymnastics failed in 2015 to inform them that Nassar was under suspicion of sex abuse.
The Karolyis, along with the USOC and USA Gymnastics, are named in a new lawsuit filed this week in Texas by gymnast Sabrina Vega. She charges that Nassar abused her hundreds of times while at the Karolyi Ranch as well as at competitions worldwide. Vega is a former USA Gymnastics national team member now at the University of Georgia.
"I have struggled to cope with the effects of the repeated abuse I suffered at the hands of Dr. Nassar. USA Gymnastics, the USOC and the Karolyis failed to protect me and the other athletes in their care, and I believe they should be held accountable," Vega says in a statement.
Reported by Ed Hula.