Graham's family agreed to a $3.9 million settlement on Friday, the city's Law Department said.
Graham's family called for a federal investigation after a Bronx grand jury didn't indict a NYPD officer.
Richard Haste testifed for more than four hours, saying he thought Graham had a gun, sources said.
Lawyers for Richard Haste said he was told by fellow officers that the teen had a gun.
Bronx District Attorney told Ramarley Graham's mother the news Wednesday as she delivered petitions.
Ramarley Graham's family plans to rally outside the DA's office Thursday calling for a new indictment.
The Bronx District Attorney's office gave the grand jury faulty instructions, said the judge.
Supreme Court Justice Steven L. Barrett said the grand jury may have received misleading instructions.
Franclot Graham said the police shooting of son was similar to the death of Kimani Gray, 16, in Flatbush.
Dozens of friends and activists turned out for a march to the 47th precinct on Saturday.
Family criticizes cops for applauding officer charged with manslaughter in Ramarley Graham shooting.
Franclot Graham felt angry and insulted that cops cheered for Officer Richard Haste.
Richard Haste was arraigned Wednesday morning on manslaughter charges in the death of Ramarley Graham.
A small group of protesters gathered in front of Bronx D.A. Robert Johnson's office Wednesday morning.
Family and supporters protested the police shooting death of Ramarley Graham at the 47th Precinct.
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