A federal judge approved the settlement in the wrongful death lawsuit. The amount of the settlement was not disclosed.
Brown's father, Michael Brown Sr., and his mother, Lezley McSpadden, filed wrongful death lawsuits in 2015 against the city of Ferguson, former police officer Darren Wilson and former Ferguson Police Chief Tom Jackson.
Michael Brown, 18, was shot and killed by Wilson, who is white, after a confrontation. Wilson was cleared of wrongdoing in the case.
Brown's death and a grand jury's decision to not indict Wilson sparked massive protests throughout Ferguson and across the country, with demonstrators arguing that the shooting was representative of police officers' ability to kill black people without punishment or accountability.
The case also sparked a nationwide debate over police conduct in black communities.
The Justice Department called on Ferguson, a suburb of St. Louis, in 2015 to reform its policing practices and criminal justice system.