Justice Department reaches $138.7M settlement to pay Nassar survivors

Update: On Tuesday, April 23, the Justice Department announced it has finalized a $138.7 million settlement among survivors of Larry Nassar, the former USA Gymnastics team doctor who sexually assaulted hundreds of female athletes.

The nearing of a settlement was first reported by The Wall Street Journal last week, but details had not been completed at the time. The legal dispute revolved around claims filed in 2022 by dozens of women accusing the FBI of negligence for failing to look into credible allegations of sexual abuse against Nassar.

Payments will be distributed to women abused by the former doctor, according to a news release by the Department of Justice.

“The FBI fundamentally failed to protect hundreds of women and girls from sexual abuse through inaction and total mishandling of their Larry Nassar investigation,” a prepared statement from attorneys representing dozens of women stated about the settlement. “We are proud to have achieved a monumental settlement with the U.S. Department of Justice, that not only secures the recovery the survivors deserve but also holds the DOJ and FBI accountable for their failures. We hope this serves as a lesson for federal law enforcement and they make the changes necessary to prevent anything like this from happening again.”

Original coverage: The Justice Department has agreed to pay about $100 million to survivors of Larry Nassar, the former USA Gymnastics team doctor who sexually assaulted hundreds of female athletes, USA TODAY reported.

The settlement, which has not yet been finalized, was to resolve allegations of the FBI's failures to immediately investigate abuse claims against Nassar. Payments will be distributed to around 100 women abused by the former doctor.

Dozens of women, including Simone Biles and other Olympic gold medalists, filed claims in 2022 accusing the FBI of negligence for failing to look into credible allegations of sexual abuse against Nassar.

John Manly, who represents many of Nassar's victims, declined to comment. A spokesman said the Justice Department can't confirm the settlement. The Wall Street Journal first reported about the settlement Wednesday.

'FBI failed survivors': Massive systematic failures uncovered in DOJ's Larry Nassar report

In 2021, the Justice Department Inspector General released a scathing report that found W. Jay Abbott, former head of the FBI’s Indianapolis Field Office, and an unidentified FBI agent took eight months to respond when the first allegations against Nassar arrived at their office in 2015.

The inspector general's investigation found that FBI officials' failure to respond resulted in more than 100 gymnasts being sexually abused by Nassar. The report found that Abbott and another unnamed agent provided false statements during interviews to "minimize errors" by agents in the Indianapolis field office. Abbott also violated ethics guidelines while negotiating for a job with the U.S. Olympic and Paralympic Committee during the investigation, according to the report.

More on the FBI: Failings of Indianapolis FBI in Nassar investigation cast a cloud over other cases

As the FBI's investigation languished, Nassar continued working with athletes for more than a year.

When the Indianapolis field office did respond to the allegations, it made "fundamental errors," including failing to notify its counterpart in Lansing, Mich., where Nassar was employed at Michigan State University.

In 2022, the Justice Department announced it would not pursue federal charges against Abbott and the other unnamed agent.

Nassar's crimes were uncovered and first made public in 2016 by an IndyStar investigation into sexual abuse within Indianapolis-based USA Gymnastics, the national governing body for the sport. He was sentenced to more than 100 years in prison in 2018.

Michigan State in 2018 agreed to pay $500 million to settle lawsuits filed by survivors. USA Gymnastics reached a separate settlement of $380 million in 2021.

Contact IndyStar reporter Kristine Phillips at (317) 444-3026 or at kphillips@indystar.com.

This article originally appeared on Indianapolis Star: Larry Nassar survivors to receive $138M from DOJ