Sterling, a 37-year-old Black man, was shot and killed by one of two White police officers who confronted him outside a convenience store in July 2016.
No charges were brought against the officers involved.
“On behalf of the family of Alton Sterling, we are pleased to announce that we have reached a $4.5 million settlement with the city of Baton Rouge and dismissed our lawsuit against the city and others,” the attorneys say in a statement.
The statement also says the settlement will allow the city to heal and help the children to be provided for financially.
The attorneys also said they were grateful for what they called “significant policy changes” undertaken by the city and the Police Department.
CNN has reached out to the Baton Rouge police and the city for comment on the settlement.
This is a developing story and will be updated.