John Pike, a 40-year-old former Lt. on the university police force, claimed he suffered from depression and anxiety after receiving death threats following the incident.
A judge approved the settlement between Pike and the university on Oct. 16, according to KCRA.
The Guardian has more:
Pike was placed on paid administrative leave after the incident and was fired eight months later in July 2012 - although an internal investigation actually found he had acted appropriately.
Video filmed at the November 2011 protest showed Pike, who was dressed in riot gear and wearing a helmet with visor, walking along a line of seated protesters spraying a steady stream of orange tear-gas toward their faces.
The footage later went viral across the web, resulting in widespread condemnation of the officer's actions. UC-Davis had previously paid out $1 million to settle a lawsuit by the demonstrators that were pepper-sprayed by Pike, according to The Guardian.
That included $250,000 in legal fees and a $30,000 payout to each protester sprayed.
Here's video of the incident: