Mr Floyd died on May 25 a year ago after Mr Chauvin kneeled on his neck for almost nine minutes, with his pleas for help captured on video.
The US$27 million settlement includes US$500,000 to improve the historically African-American business district in Minneapolis where Floyd died. "Our settlement with George Floyd's family reflects a shared commitment to advancing racial justice and a sustained push for progress". News of the settlement broke during a lunch break during day four of jury selection in the trial.
Chauvin is charged with second-degree murder and manslaughter, as well as third-degree murder.
The trial of three other dismissed Minneapolis police officers who were on the scene as Chauvin pinned down Floyd is not scheduled until August and could be canceled, and charges dropped, if Chauvin is acquitted. The settlement was announced by the Floyd family attorney Ben Crump, who has also represented the family of Breonna Taylor among other victims of police brutality.
Floyd's brother, Rodney Floyd, called the settlement "a necessary step for all of us to begin to get some closure".
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The settlement is for the civil lawsuit brought against the city of Minneapolis and the four officers involved with Floyd's death. Minneapolis has been fundamentally changed by this time of racial reckoning.
"We are encouraged both by the progressive police reforms already adopted and the ambitious changes city of Minneapolis leaders still hope to create", said Antonio Romanucci, another Floyd family lawyer.
She was asked about her ability to consider only the evidence presented at trial and not just the bystander video that she said was so inhumane that should had to stop watching it, and she replied that she could. "And the Floyd family has shown us the way", Jenkins added. "No amount of money can ever address the intense pain or trauma caused by this death to George Floyd's family or the people of our city".
The reinstatement of a third-degree murder charge was a victory for state prosecutors, who had sought the additional lesser murder charge in part to afford them an extra path to a conviction should the jury find the evidence does not support the most serious charge. The claim filed included a complaint against the city, listing them as the responsible party for the Minneapolis Police Department because they are the city's primary use for law enforcement.
Seven jurors have been selected so far for the case and seven more need to be chosen in upcoming days.
Defendant and former Minneapolis police officer Derek Chauvin, right, listens as Hennepin County Judge Peter Cahill presides over pretrial motions before jury selection, March 9, 2021, at the Hennepin County Courthouse in Minneapolis.