San Jose reached a settlement with Salomon Bros.

The firm, one of 13 investment brokers sued by the city in 1984 after losing $60 million in bond investments, agreed to pay the city $250,000. The lawsuit alleged that the brokers took advantage of San Jose’s former money managers by recommending speculative, long-term investments known to be unsuitable for the city. It was the first settlement reached in lengthy legal proceedings. Salomon Bros. was involved in the smallest portion of the investments and transactions cited in the suit, city officials said.