United States Court of Appeals For the Seventh Circuit ____________________ No. 21-2914 USA GYMNASTICS, Plaintiff-Appellee, v. LIBERTY INSURANCE UNDERWRITERS, INC., Defendant-Appellant. ____________________

Appeal from the United States District Court for the Southern District of Indiana, Indianapolis Division. No. 1:18-cv-01306-RLY-MPB — Richard L. Young, Judge. ____________________

ARGUED MAY 17, 2022 — DECIDED AUGUST 16, 2022 ____________________

Before SYKES, Chief Judge, and HAMILTON and BRENNAN, Circuit Judges. BRENNAN, Circuit Judge. Larry Nassar, who was affiliated with nonprofit USA Gymnastics, Inc. (“USAG”), sexually as- saulted hundreds of female athletes. After Nassar’s conduct came to light, USAG faced many lawsuits and multiple inves- tigations. USAG and its insurers, including Liberty Insurance Underwriters, Inc., litigated questions about insurance cover- age in an adversary proceeding before a bankruptcy court. In 2 No. 21-2914 a previous appeal, among other rulings, we affirmed the de- cision that Liberty had a duty to defend USAG. There were also ancillary disputes over the amount of at- torneys’ fees that Liberty owed USAG. While the first appeal remained pending, USAG sought to enforce the order enti- tling it to reimbursement. Liberty resisted, asserting that large portions of the fees USAG claimed were not reasonable and necessary. After a bench trial, the bankruptcy court recom- mended that the district court award USAG nearly all the re- quested fees. The district court agreed, so it adopted most of the bankruptcy court’s findings and conclusions and entered judgment for USAG. Liberty appeals. The bankruptcy and district courts correctly concluded that USAG was entitled to a presumption that the fees it in- curred were reasonable and necessary. Liberty must therefore rebut the presumption by showing that various portions of the fees did not meet that standard. Because Liberty fails to do so, we affirm. I Our opinion resolving the previous appeal recounts the underlying facts in detail. USA Gymnastics v. Liberty Ins. Underwriters, Inc., 27 F.4th 499, 508 (7th Cir. 2022). In short, Nassar used his position with USAG to sexually assault hun- dreds of women and girls over several decades. Because of that abuse, USAG has faced hundreds of lawsuits by former athletes, as well as several investigations by federal and state entities, including Congress, the Indiana Attorney General, and the United States Olympic & Paralympic Committee (“USOPC”). Id. at 509. No. 21-2914 3

USAG sued several insurers in Indiana state court, argu- ing the companies were required to defend it and pay legal expenses related to the lawsuits and investigations. Id. One of those insurers was Liberty, from which USAG had purchased a claims-made directors and officers liability insurance policy. The insurers removed the case to the United States District Court for the Southern District of Indiana under diversity ju- risdiction. USAG filed for bankruptcy under Chapter 11, and the insurance-coverage litigation between USAG and Liberty took place in an adversary proceeding as part of that bank- ruptcy. Id. The district court retained jurisdiction. Faced with cross-motions for summary judgment, the bankruptcy court concluded that Liberty’s policy covered the “athlete lawsuits” and various investigations. Id. at 509–10. Liberty filed objections to the bankruptcy court’s findings and conclusions, but the district court overruled those objections. In January 2020, the district court ordered Liberty to “provide a complete defense” to USAG with respect to several m