It applies only to plaintiffs who have sued the university, and not those who have filed claims against the U.S. Olympic Committee, USA Gymnastics, gymnastics coaches Bela and Martha Karolyi or anyone else, the attorneys said.
Nassar was sacked from Michigan State in 2016, two years after he was the subject of a sexual assault investigation.
A lawyer for Michigan State, Robert Young, said, "Michigan State is pleased that we have been able to agree in principle on a settlement that is fair to the survivors of Nassar's crimes".
The Michigan State University Board of Trustees signed off on the settlement during a conference call Tuesday night. This is a passion all of the Sister Survivors share, and one which has not diminished or changed.
Michigan State has been accused of failing to protect Nassar's victims by ignoring or dismissing complaints against him as far back as the 90's.
Interim MSU president John Engler has maintained throughout the proceedings that the settlement costs will be paid by both tuition and state aid, but MI lawmakers have balked at these proposals.More news: 'We vote!' North Carolina teachers walk out for higher pay
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"We are truly sorry to all the survivors and their families for what they have been through, and we admire the courage it has taken to tell their stories".
Michigan State University became the subject of its own investigation earlier this year, as a special prosecutor looked the school's role - particularly the university's lack of action - in Nassar's serial abuse of student athletes.
The announcement did not indicate how much money each victim would receive and also doesn't say how Michigan State will pay the bill. But his accusers also said he molested them at a gymnastics-training ranch in Texas and at national and global competitions.
"I think that the magnitude and the level of hurt that these women endured as kids, made it essentially impossible for MSU to continue business as usual", Manly, the victims' attorney, said in a phone interview Wednesday.
Some of the women abused by Nassar are star gymnasts, including US Olympic medallists McKayla Maroney, Aly Raisman, Gabby Douglas and Simone Biles, and have already spoken out. Outcry over the case prompted the resignation of university president Lou Anna Simon and the abrupt retirement of athletic director Mark Hollis.
Thomashow also said there was more work left to be done.
The lawsuit settlement will cost MSU at least $500 million, with $425 million being paid now and $75 million being reserved, according to the Free Press.