Manly has represented multiple victims in cases against the university. Watts noted the settlement in principle was agreed upon by Michigan State's Board of Trustees in a Tuesday night conference call.
The university will pay $425 million now and $75 million will be held in a trust fund. MSU is expected to settle with 332 victims.
Nassar was convicted of sexually assaulting multiple girls and young women during his time as a doctor at Michigan State and for USA Gymnastics.
He was sentenced to 60 years in prison on child pornography charges, 40 to 175 years in prison on sexual assault charges and 40 to 125 years in prison on additional sexual assault charges.
Per David Jesse and Gina Kaufman of the Detroit Free Press, MSU Interim President John Engler said the school plans to use tuition and state aid to pay for the settlements. However, lawmakers are opposed to the use of the latter.
Nassar graduated from the Michigan State University College of Osteopathic Medicine in 1993 before he became a physician at the school.
In addition to those he sexually assaulted at Michigan State, high-profile gymnasts Aly Raisman, McKayla Maroney, Gabby Douglas, Simone Biles and Jordyn Wieber came forward as victims of Nassar's abuse during his time as USA Gymnastics' team physician.