Attorney says the bankruptcy filing halted jury selection for two North Texas sisters suing the cheer giant and a former coach. <\/p>\n
PLANO, Texas \u2014 Cheer Athletics\u2013Plano, one of the most recognized names in competitive cheerleading, has filed for Chapter 11 bankruptcy protection \u2014 just one day before jury selection was scheduled to begin in a civil trial involving two North Texas sisters who allege a former coach sexually abused them.<\/p>\n
According to records filed in federal bankruptcy court on November 2, Cheer Athletics\u2013Plano, Inc. sought Chapter 11 protection in the Eastern District of Texas, Sherman Division. The filing, signed by owner Joseph K. Melton, lists the gym\u2019s assets and liabilities, each between $1 million and $10 million.<\/p>\n
Attorney Gregory W. Mitchell of The Mitchell Law Firm in Richardson is representing the Plano-based company, which described itself as a \u201csmall business debtor\u201d in the filing. Chapter 11 allows a business to reorganize its debts and continue operating while court proceedings determine how creditors, including plaintiffs in lawsuits, will be paid.<\/p>\n
\nTrial halted before it begins <\/p>\n
The bankruptcy filing immediately triggered an automatic stay, halting all ongoing litigation \u2014 including the long-awaited civil case brought by Hannah and Jessica Gerlacher, who filed their lawsuit in 2021 against Cheer Athletics, former coach Jason McCartney, and the U.S. All Star Cheer Federation.<\/p>\n
Their attorney, Michelle Simpson Tuegel, said the timing of the filing prevented the case from reaching a jury.<\/p>\n
\u201cWe were scheduled, actually, today, to start jury selection,\u201d Tuegel said. \u201cAnd yesterday, the day before we were set to seat a jury for Hannah and Jessica\u2019s civil case against Cheer Athletics and their coach, they filed for Chapter 11 bankruptcy, which prevented us from proceeding to trial.\u201d<\/p>\n
Tuegel added that while bankruptcy can be a legitimate financial tool, it\u2019s also often used strategically to avoid facing juries.<\/p>\n
\u201cI\u2019ve been involved in cases like the Nassar cases against USA Gymnastics and the Boy Scouts \u2014 and we\u2019ve seen organizations use bankruptcy to shield themselves from accountability,\u201d she said. \u201cWhen you file the day before you start jury selection, the answer seems pretty clear what you were trying to avoid.\u201d<\/p>\n
Tuegel represents several women with claims against Cheer Athletics and McCartney \u2014 including two Dallas County cases that have already been settled and another that remains pending in Travis County. She said the Gerlacher sisters\u2019 case was the most imminent, with other plaintiffs, identified as Jane Does, expected to testify if the trial had proceeded.<\/p>\n
\u201cI tend to believe the threat of facing at least four victims in this trial was a factor in them deciding to declare bankruptcy at the last hour,\u201d she said.\u00a0<\/p>\n
McCartney, the coach at the center of the lawsuits, has not been criminally charged, though Tuegel said the allegations have been reported to law enforcement.<\/p>\n
\u201cHe hasn\u2019t been convicted at this time,\u201d she said. \u201cIt\u2019s not uncommon in cases like this where we don\u2019t see prosecution, but I would hope law enforcement takes another look in light of what\u2019s happening.\u201d<\/p>\n
\nCheer Athletics responds <\/p>\n
Cheer Athletics publicly addressed the filing on Sunday on its official Facebook page, writing:<\/p>\n
\u201cThe Plano location of Cheer Athletics filed for Chapter 11 reorganization today after incurring significant legal expenses. All activities will continue as normal. Athletes will see the same familiar faces, coaches, and teammates they know and love now and in the years to come.\u201d<\/p>\n
The post framed the filing as a financial reorganization, not a closure \u2014 assuring families that training and competitions will continue uninterrupted.<\/p>\n
Under Chapter 11, Cheer Athletics\u2013Plano will continue operating while a bankruptcy trustee reviews debts and creditor claims. That list could include plaintiffs like the Gerlacher sisters, whose civil claims are now paused as part of the reorganization process.<\/p>\n
Tuegel said her team will continue pursuing accountability through the bankruptcy court.<\/p>\n
\u201cBankruptcy is not our preferred path,\u201d she said. \u201cBut it\u2019s not the end of the road. We still can seek some level of accountability through that process. I hope the trustee takes a hard look at whether this was really needed \u2014 or whether they\u2019re just trying to avoid jury accountability in Texas.\u201d<\/p>\n
Cheer Athletics, founded in Plano and now a national brand with gyms across the country, has long been considered one of the elite names in competitive cheer \u2014 producing world champions and college-bound athletes. Its Plano headquarters, known as \u201cthe mothership,\u201d remains open as the organization navigates its way through bankruptcy court.<\/p>\n","protected":false},"excerpt":{"rendered":"Attorney says the bankruptcy filing halted jury selection for two North Texas sisters suing the cheer giant and…\n","protected":false},"author":2,"featured_media":33431,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[160,162,161],"class_list":{"0":"post-33430","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-plano","8":"tag-plano","9":"tag-plano-headlines","10":"tag-plano-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/33430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=33430"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/33430\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/33431"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=33430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=33430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=33430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}