The family of Jean Charles de Menezes' – shot in error by the Metropolitan Police – have agreed to end their legal action after accepting £100,000 in compensation.

The Guardian reports that the family of the Brazilian electrician agreed an out-of-court settlement with Scotland Yard over the death of the 27-year-old, who was shot at Stockwell tube station in July 2005, after police surveillance officers mistakenly identified him as a terror suspect.

Mr de Menezes’ family has battled for four years to reach a settlement – the family’s legal costs will also be paid. Scotland Yard also repeated its apology for the killing as the settlement was announced.

Mr de Menezes came from Brazil to work in the UK and was targeted by police as he left his flat the day after terrorists had staged an abortive attempt to blow up the Tube network in London. Officers followed him onto the Tube at Stockwell in south London and opened fire when he reached a carriage. Mr de Menezes was shot in the head repeatedly as officers held him down and he died at the scene. The officers had mistaken him for a known terror suspect and were under the impression he was about to detonate a bomb on the train.

Neither party to the settlement has commented on the allegation that the family has been paid less because they are poor and come from Brazil, where the cost of living is not as high.

In December 2008, an inquest jury returned an open verdict into the killing of Mr de Menezes.

The Crown Prosecution Service also decided that no individual should face trial for the killing – despite a jury not believing parts of the police account as to how Mr de Menezes came to be killed that day. However, the Metropolitan Police were convicted of health and safety failures in relation to the death of Mr de Menezes and fined £175,000, with £385,000 costs.

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