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DOJ's $139M Payout to Nassar Survivors, Senate's Aid Triumph, FTC Bans Noncompete Agreements

Just reporting the facts.

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Centrist Chronicle
April 25, 2024

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Yesterday, the US Justice Department agreed to settle claims with 139 women for nearly $139 million due to the FBI's inadequate handling of sexual abuse accusations against former Team USA gymnastics doctor Larry Nassar.

This agreement follows over two years of legal action initiated by a group that includes Olympic gold medalists Simone Biles, Aly Raisman, and McKayla Maroney. Their lawsuits were prompted by a 2021 Justice Department report criticizing the FBI’s Indianapolis and Los Angeles offices for their sluggish response to the 2015 and 2016 allegations against Nassar. Nassar, 60, was eventually arrested in 2016 following an independent investigation by Michigan State University, his former employer. He is currently serving a de facto life sentence after being convicted on multiple counts of sexual abuse against athletes under his care.

To date, nearly $1 billion in settlements has been paid by various entities in connection with Nassar's abuses, including $500 million by Michigan State University and $380 million from the US Olympic and Paralympic Committee.


The Senate voted overwhelmingly last night, 79 to 18, to approve a substantial package that merges $95 billion in foreign aid for Ukraine, Israel, and Taiwan with several national security initiatives, such as a potential TikTok ban. This follows the House's decision to pass the measure as four bills on Saturday. President Joe Biden is anticipated to sign the package into law shortly.

The aid allocation provides $61 billion for Ukraine, $26 billion for Israel (which includes humanitarian assistance for Gaza civilians), and $8 billion for Taiwan. Additional national security measures stipulate that ByteDance, a China-based company, must divest TikTok's US operations within nine months, or the video-sharing platform will face a national prohibition. TikTok, with an estimated 170 million monthly active users in the US, is under scrutiny by the Federal Trade Commission for alleged violations of federal law concerning its data and security practices.


On Tuesday, the Federal Trade Commission (FTC) passed a resolution with a 3-2 vote to prohibit noncompete clauses that restrict many employees from joining competitors or establishing competing businesses after leaving their current employment.

The FTC's new regulation impacts workers across all levels, from fast food employees to top executives, affecting approximately 18 percent of the U.S. workforce, or around 30 million people.

Under this new mandate, all new noncompete agreements will be banned, and employers must inform both current and former employees that these clauses will not be enforced. Moreover, companies are required to eliminate most existing noncompete agreements. However, following a revision from the initial proposal, the rule allows for the retention of such agreements for senior executives.