The city previously denied the family's $120 million claim, filed by attorney Jeffrey Galen in the days following the shooting.
The family says autopsy results show that 19-year-old Abdul Arian did not have any drugs or alcohol in his system when he was killed.
Arian was shot and killed on April 11 following a pursuit that began near the Northridge Fashion Center.
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Officers tried to stop Arian for driving erratically. It remains unclear why he did not pull over.
During the pursuit, Arian called 911 and engaged in a lengthy conversation with the operator, according to an LAPD statement.
Among the statements he made were: "I have a gun," and, "If they pull their guns, I'm gonna have to pull my gun out on them."
He also said: "I've been arrested before for possession of destructive devices, I'm not afraid of the cops."
The 911 dispatcher urged Arian to stop, telling him, "I don't want you to hurt yourself."
Arian responded, "I'm not gonna get hurt s---head, f--- these police, they're gonna get hurt."
The pursuit terminated after officers rammed Arian's vehicle on the 101 Freeway near Canoga Avenue.
Arian then got out of his car and attempted to run.
He turned toward officers several times, and appeared to have something in his hand.
Eight LAPD officers fired more than 90 rounds at Arian, who was fatally wounded. He was pronounced dead at the scene.
Police have defended their actions, saying that Abdul took an aggressive stance and had indicated to the 911 dispatcher that he was armed.
Still, Arian's friends and family insist that police did not have to empty their weapons to stop Arian.
"I saw a young man that was scared and petrified and didn't know what to do," Galen said.
"The police had every right to follow him. I'm not saying they didn't," Galen said. "What they didn't have a right to do was to gun him down."
Abdul's friends and family protested outside LAPD's Devonshire Division following the shooting.