The agreement, however, has yet to be finalized, and no funds have been disbursed at this time, the source revealed.

The report of the settlement was initially published by the Wall Street Journal. When contacted for comment, a spokesperson for the Justice Department declined to provide any further information regarding the matter.

Larry Nassar, a former sports doctor at Michigan State University and USA Gymnastics, is currently serving a life sentence for sexually assaulting numerous athletes, including prominent Olympic gymnasts, under the guise of medical treatment.

Legal claims were filed against the US government, focusing on a 15-month period starting in 2015 during which FBI agents in Indianapolis and Los Angeles allegedly possessed knowledge of the abuse allegations against Nassar but failed to take appropriate action. A subsequent internal investigation by the Justice Department inspector general confirmed significant mishandling of these allegations by the FBI agents.

Nassar's illicit activities persisted until his arrest in the fall of 2016. Among the survivors of his abuse are celebrated Olympians Simone Biles, Aly Raisman, and McKayla Maroney.

The FBI director, Christopher Wray, expressed regret to the survivors during a Senate hearing in 2021, acknowledging the repeated failures of individuals within the FBI to apprehend Nassar in 2015. "I'm sorry that so many different people let you down, over and over again," Wray stated. "And I'm especially sorry that there were people at the FBI who had their own chance to stop this monster back in 2015 and failed."

In relation to Nassar's actions, the Michigan attorney general's office took on the assault charges, while federal prosecutors in western Michigan pursued a separate case involving child sexual abuse images. Michigan State University, which has also been accused of neglecting previous opportunities to halt Nassar's abuse, agreed to pay $500m to over 300 women and girls impacted by the scandal. Additionally, USA Gymnastics and the US Olympic and Paralympic Committee reached a $380m settlement.

Though the settlement between the US Justice Department and Larry Nassar's survivors is still pending finalization, it marks a significant step in addressing the claims of those affected by Nassar's heinous actions.