Macario Dagdagan alleged that he suffered a damaged spine after two officers shocked him with a Taser gun and handcuffed him while investigating a report of an alleged assault on Dagdagan's girlfriend.
The lawsuit, filed in federal court in Sacramento, alleged that the officers violated his constitutional rights by entering his home without a court-approved warrant.
Last year, a federal appeals court ruled that under the facts alleged in the lawsuit, the officers should have obtained a warrant because there was no emergency situation.
The appeals court said that, according to the lawsuit, the officers had already interviewed the alleged victim at her home before coming to Dagdagan's apartment, and knew that she was safe at her home.
The settlement was announced by attorneys Todd Boley and Peter Alfert.
The agreement provides that the city of Vallejo, while settling the lawsuit in order to end the litigation, does not admit to any wrongdoing.