"This historic settlement came about through the bravery of more than 300 women and girls who had the courage to stand up and refuse to be silenced", Manly said in a statement.
The settlement in principle was agreed to by the MSU Board of Trustees during a conference call held Tuesday night, May 15.
Most victims allege that Nassar used his fingers to digitally penetrate the vagina and anuses of young female athletes as part their treatment for sports injuries. He also possessed child pornography.
Nassar will likely spend the rest of his life behind bars.
Olympic gold medalists Jordyn Wieber, Aly Raisman, Gabby Douglas and McKayla Maroney say they were among Nassar's victims. The school had insisted that no one covered up assaults, although Nassar's boss, former medical school dean William Strampel, was later charged with failing to properly supervise him and committing his own sexual misconduct. "We appreciate the diligent efforts of Mick Grewal and the survivors' attorneys across the nation who worked to obtain this measure of justice and healing".
Special Counsel Bill Forsyth said, "It is very important to see resolution on the civil side, and I hope this provides some sense of relief and closure for the survivors".
Some women say they raised concerns about Nassar's treatments to people at MSU or USAG, only to have those concerns dismissed or ignored.
Nassar admitted in court to using his position as a trusted medical doctor to sexually abuse young girls and women who came to him for medical care for about two decades.
Michigan State and lawyers for 332 victims announced Wednesday that they have reached a $500 million settlement.
The statement doesn't indicate how much money each victim would receive.
The lowering also reflects a belief that MSU's enrollment could drop, which means less money coming into the university. Any suggestion that the university engaged in a coverup is "simply false", a school statement said.
The school has about 39,000 undergraduate students. According to the Detroit Free Press, the university brought in $859 million in tuition revenue in 2016-17.
A $500 million payout by MSU to settle the legal claims would dwarf the $109 million Penn State University paid 35 victims to settle the Jerry Sandusky sexual abuse scandal in 2013 that shook the Nittany Lions' football program and took down longtime coach Joe Paterno.
It led to the biggest crisis in MSU history, including the ouster of President Lou Anna K. Simon and Athletic Director Mark Hollis.
Nassar was sacked by Michigan State, and was charged with possession of child pornography on his laptop computer as well as abusing a family friend who was not a patient, in addition to molesting a number of former patients.
The settlement applies to only Michigan State University and MSU individuals sued in the litigation.