Victim 2 has said he was the boy then-graduate assistant Mike McQueary testified he saw being attacked by Jerry Sandusky in a team shower in 2001. McQueary notified Paterno and school officials at the time, but police were never called, an omission that eventually led to Paterno's firing.
Two other Casey clients who reached deals with the school were not part of the criminal case.
Another man — Victim 5 in court documents — reached a settlement last week.
Sandusky spent three decades at Penn State under Paterno. A 1998 complaint about Sandusky showering with a boy — one of those who testified against him — was investigated by university police, but no charges were filed. McQueary witnessed a different incident involving Victim 2 in the team shower in 2001.
The response of university leaders, including Paterno, was heavily criticized in a report commissioned by the school last year. The NCAA also penalized the school for its response to complaints about Sandusky and imposed a $60 million fine, a four-year bowl ban, a loss of scholarships and the elimination of 112 Paterno-era wins.
Paterno died in January 2012. Criminal charges related to allegations of a cover-up are pending against three others: former president Graham Spanier, retired vice president Gary Schultz and retired athletic director Tim Curley. All three deny the allegations.
Other lawyers involved in settlement talks said Friday they were still working with the university but none had a signed, final agreement.
A lawyer brought in by Penn State to facilitate negotiations has said he expected more cases to settle in the near future.