It was in January 2020 that a helicopter carrying nine people, all of whom died, crashed in foggy conditions.
Photos of the crash taken by police and firefighters were leaked.
Widow Vanessa Bryant has taken the case to court, claiming emotional distress.
“Today we reach the culmination of Ms. Bryant's courageous fight to bring those responsible for these images to justice.
She fought for her husband, her daughter and all those in the community whose bereaved families were treated with similar disrespect, said Bryant's lawyer Luis Li, according to Reuters.
It is the city of Los Angeles that will pay the damages.
City representatives say the settlement is fair and reasonable.
Kobe Bryant, a legend in basketball with, among other things, five NBA titles, turned 41.
Daughter Gianna turned 13.
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Kobe Bryant's jersey from 2008 sold for SEK 60 million.
Photo: TT