Larry Nassar

The U.S. Justice Department announced a $138.7 million settlement Tuesday with more than 100 people who accused the FBI of grossly mishandling allegations of sexual assault against Larry Nassar in 2015 and 2016, a critical time gap that allowed the sports doctor to continue to prey on victims before his arrest.

The deal has not been finalized, and no money has been paid, the source said on condition of anonymity because the person was not authorized to speak before a formal announcement.

Disgraced sports doctor Larry Nassar has been stabbed multiple times during an altercation with another inmate at a federal prison in Florida. Nassar is serving decades in prison after admitting sexually assaulting athletes at Michigan State University and at Indianapolis-based USA Gymnastics, including Olympic medalists.

The FBI has reached out to attorneys representing Olympic gold medalist Simone Biles and other women who were sexually assaulted by Larry Nassar to begin settlement talks in the $1 billion claim they brought against the federal government, according to three people familiar with the matter.

The U.S. Justice Department said Thursday it will not pursue criminal charges against former FBI agents who failed to quickly open an investigation of sports doctor Larry Nassar despite learning in 2015 that he was accused of sexually assaulting female gymnasts.

Indianapolis-based USA Gymnastics told local FBI agents in 2015 that three gymnasts said they were assaulted by Larry Nassar. But the FBI did not open a formal investigation or inform federal or state authorities in Michigan, according to a report from the Justice Department’s inspector general.

The Michigan Court of Appeals on Tuesday overturned the conviction of a former Michigan State University gymnastics coach who was accused of lying to investigators about her knowledge of sexual abuse complaints against Larry Nassar in the 1990s.

An internal investigation by the Justice Department released in July said that the FBI made fundamental errors in the probe and did not treat the case with the "utmost seriousness" after USA Gymnastics first reported the allegations to the FBI’s field office in Indianapolis in 2015.

The FBI made significant errors in investigating sexual abuse allegations against former USA Gymnastics national team doctor Larry Nassar and didn’t treat the case with the “utmost seriousness." That's according to a Justice Department’s inspector general report.

The $215 million total is the amount the insurance carriers for USA Gymnastics and the United States Olympic and Paralympic Committee are willing to provide in hopes of ending years of legal battles with athletes who were abused by former national team doctor Larry Nassar.