The Metropolitan Police have apologised to the family of Ian Tomlinson as the force confirmed they had now reached an out-of court settlement.
Tomlinson died after being pushed to the ground by PC Simon Harwood during the 2009 G20 protests in London. The father-of-nine then walked 75 metres further along the street before collapsing and dying.
The officer was cleared of the manslaughter of the 47-year-old, despite a separate inquest declaring Tomlinson had been unlawfully killed.
Harwood was later fired from the force after being found guilty of gross misconduct by a disciplinary panel.
The force has now admitted it "got it wrong" in how it dealt with Tomlinson's death and in for re-instating Harwood to the force in 2004 despite having a string of allegations of misconduct against him during a 12-year period, including claims of abuse of authority and racial abuse.
He was allowed to retire on medical grounds in 2001 before a disciplinary hearing had taken place and later rejoined the Met in late 2004.
Deputy assistant commissioner Maxine de Brunner has now apologised to Tomlinson's family for the "excessive and unlawful force" Harwood had used against Tomlinson, who was walking home and not taking part in the protests when he was struck by the officer.
De Brunner said: "I take full responsibility for the actions of Simon Harwood on 1 April 2009. His actions fell far below the standard we expect from our officers. I accept the finding of the inquest that Mr Tomlinson was unlawfully killed.
"As the jury found, at the time of the strike and push Mr Tomlinson was walking away from the police line. He was complying with police instructions to leave Royal Exchange Buildings. He posed no threat.
"Today, I apologise unreservedly for Simon Harwood's use of excessive and unlawful force, which caused Mr Tomlinson's death, and for the suffering and distress caused to his family as a result."
Tomlinson's wife and children will now receive an undisclosed amount of compensation as part of the agreement with police.
His wife Julia said the apology and compensation is "as close as we are going to get to justice".
Dr Freddy Patel, the pathologist who conducted the first post-mortem on Tomlinson, was struck off the medical register after saying the newspaper vendor had died from a heart attack. Infact cause of death had been internal bleeding as a result of being struck before suffering a cardiac arrest.
Patel, 63, was found guilty of misconduct at the Medical Practitioners Tribunal Service (MPTS). In total, the MPTS found 68 irregularities in Patel's work, including failing to disclose to police that Tomlinson suffered injuries that could have originated from a baton strike.
De Brunner added: "The Commissioner further apologises for the information given by a Metropolitan police officer to Dr Shorrock and Dr Swift that misled them initially as to the cause of death.
"Whilst we are satisfied that the officer's actions were inadvertent, and not designed to mislead the pathologists, this should not have happened and I apologise to the family for the additional distress it caused them."