The University of California will pay about $1 million to 21 UC-Davis students who were pepper-sprayed during a peaceful campus protest last November.
A viral video showed an officer casually walking up to and aiming a thick stream of pepper spray directly into the faces of seated students at close range during an Occupy rally.
The incident triggered outrage and an investigation.
In the settlement, each student who filed suit against the college will each receive $30,000 and a handwritten apology from UC-Davis Chancellor Linda Katehi.
In addition, the university system will pay $250,000 for the students' legal fees.
The university set aside $100,000 for additional students who wish to join the class-action suit. Students are set to receive up to $20,000 each depending on how many come forward.
In the agreement obtained by ABC News, students will also receive "reasonable assistance and counseling" for the "academic performance issues that arose as a result of the incident."