The city on Tuesday agreed to pay nearly $600,000 to settle a lawsuit stemming from the Occupy Wall Street protests.
The litigation had accused the police of wrongfully arresting a group of protesters during a march on New Years Day 2012.
Lawyers for the activists released video they say showed police telling the crowd to disperse and then preventing them from doing so.
One of the plantiffs says she hopes the settlement will prompt change in the NYPD's community relations.
"I think that this administration has an opportunity to engage with the police in a different way about how they sort of reach out to different communities. There's a lot of fear, there's a lot of mistrust of police, and a lot of that's because of the way they engage with regular citizens," said Jennifer Peat, a plaintiff in the settlement.
While the city law department has not commented on the settlement, a spokesperson previously said the arrests followed "a very rowdy and tumultuous March."
This is the biggest settlement the city has reached with Occupy Wall Street protesters to date.