Browder was a 16-year-old secondary school student when he was charged with theft of a backpack and arrested, and later charged with stealing a second degree. He was released in 2013 when charges against him were rejected.
Browder had just turned 22 when hanged in 2015.
The New York Law Department confirmed the settlement of family affairs.
"The family thinks the deal is fair and reasonable," Brownard's lawyer, Sanford Rubenstein, told a press conference Friday. "But they hope his memory will be honored with the reforms that still have to be done in our prison system."
While in the Rivers, he tried to commit suicide at least six times, according to a lawsuit filed by Broader against New York, his police station, the Bronx District Attorney, and others, including several correction officers. The claim alleges an unlawful arrest, malicious prosecution and refusal.
Browder was hospitalized for five days in November 2013 after a suicide attempt. According to his lawyer, he attended a public college in the Bronx and had 3.5 GPAs.
Browder's former lawyer, Paul Prestia, told CNN in 2015 that Browder is bright, humble and someone with a great sense of humor.
"Before I went to jail, I never had any mental illness," Browder told HLN. "I never tried to hurt, I never tried to commit suicide, I never had such thoughts I had stressful moments before I went to jail but not in jail It was the worst experience I've ever had I've lived through my life. "
"Years of near-complete isolation require a terrible price," Kennedy writes.
Sophie Tatum and Ariana de Vogue from CNN contributed to this report.