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According to NFL Network Insider Ian Rapoport, Seattle knew it should have simply listed Sherman's minor MCL injury but "are not expected to be penalized heavily -- if at all -- for not disclosing (the injury). The league was provided with all medical materials regarding Sherman's MCL injury, and they were in the process of a final review. But as the investigation wraps up, the view is that the Seahawks did not commit an egregious rules violation."
Shortly after the end of the season, Seahawks coach Pete Carroll admitted that Sherman was dealing with the issue, which was never listed on an official injury report.
The development jibes with the expectations of Sherman himself, whom I spoke with down at the Pro Bowl last week in Orlando. Sherman mentioned the Colts not being penalized for failing to report Andrew Luck's cracked ribs back in 2015 as precedent. He said it would be odd if the NFL had punished the Seahawks for essentially committing a similar violation. Sherman also told me that his knee injury was "not that serious."
At the time, a league spokesperson said the NFL was still reviewing Seattle's case.
Rapoport added that Sherman not missing any game time and participating in the Pro Bowl will be a major factor in the decision. However, "there is still the possibility that draft pick compensation is affected, but it won't be a major alteration. Seattle was stripped a fifth-round pick for violating the NFL's contact rule regarding organized team activities. They are considered repeat offenders."