The university and lawyers for 332 victims announced the deal after negotiating privately with the help of a mediator.
"Denhollander says she remains "deeply disappointed at the missed opportunity for meaningful reform at the university".
Nassar used to work at the school as a sports doctor. Since then, nearly 300 women and girls have publicly accused Nassar of abuse, and almost all during medical appointments.
The settlement is only between the victims, MSU, and the university's current and past employees, and doesn't involve USA Gymnastics and other parties who have been sued.
Some 200 victims testified during live-streamed sentencing hearings in January and February about the resulting emotional and physical scars they have endured. However, the settlement covers only the survivors connected to Michigan State.
The lawsuits were filed in federal court in Grand Rapids, Michigan and state courts in California, where the victims allege that MSU, USA Gymnastics, and people involved in both institutions didn't protect them from Nassar's actions.
More than 140 women and girls - including Olympic gymnastic stars McKayla Maroney, Aly Raisman, Gabby Douglas and Simone Biles - have come forward detailing the abuse they faced at the hands of Nassar.
Nassar sexually assaulted women and girls while serving as a sports doctor at Michigan State. A successful resolution to the litigation is a positive step in moving us all forward. The organization previously said it was unaware of the abuse until 2015.
Trustee Brian Breslin, chairman of MSU's governing board, said the school is "truly sorry" for what victims and their families went through and says the school recognizes a "need for change" in sexual assault awareness and prevention.
Nassar pleaded responsible to molesting ladies and ladies below the guise that he was treating them for accidents.
Nassar was sentenced to 60 years in prison on the child porn charges, and up to 175 years on sex abuse charges.
The state criminal inquiry into the university has so far yielded charges against William Strampel, the former dean of the MSU medical college where Nassar practiced.
Nassar is now being held in federal jail and will likely remain there for the rest of his life. Nassar treated campus athletes and young gymnasts at his Michigan State office.
The deal was announced Wednesday by Michigan State and lawyers for 332 victims. He had a global repute whereas working on the identical time for USA Gymnastics, which trains Olympians.
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