Celebrity attorney Gloria Allred declined to discuss the details of the settlement in a statement issued Tuesday afternoon, but said "one important aspect" was that West apologize to her client, Danny Ramos. Allred's statement included a photo of the two men shaking hands.
Allred said the case was settled "to the satisfaction of the parties," prompting her to file a motion Tuesday to dismiss the case. The matter was set for trial in Los Angeles County Superior Court next week, court records showed.
"We believe that this case sent an important message," Allred said. "Celebrities are not above the law."
West's attorneys did not immediately respond to requests for comment.
The 37-year-old rapper was sentenced to two years probation in connection with his July 19, 2013, scuffle with Ramos, which was captured on video. The video shows West wrestling Ramos to the ground.
Allred said her client injured his hip, "was in great pain and had to be transported in an ambulance to the emergency room."
The L.A. County district attorney's office declined to file felony charges and instead referred the matter to the city attorney's office. West pleaded guilty in November 2013 to misdemeanor charges of criminal battery and attempted grand theft.
The grand theft charge was dropped in exchange for the plea. West was also ordered to complete community service, attend anger management classes and stay 100 yards away from Ramos.
Allred filed her case about a month after the altercation, alleging assault, battery, negligence and a violation of civil rights. She sought unspecified "general and punitive" damages on her client's behalf.