The district will also pay $425,000 in legal fees to their attorney, Mark S. Haltzman.
The announcement brought an abrupt end to a case that divided Lower Merion parents, fueled an acrimonious court battle, and was on pace to cost the district several million dollars. It also followed weeks of behind-the-scenes negotiations between Haltzman and district lawyer Henry E. Hockeimer, including two days of mediation ordered by the federal judges overseeing the cases and pressing for a resolution.
School Board President David Ebby said the board decided to settle after the district's insurance company agreed to cover $1.2 million of the costs. That insurer, Graphic Arts Mutual Insurance, initially refused to pay any claims because it said privacy-invasion claims were not covered under the district's multimillion-dollar liability policy.
Ebby also said the board thought a protracted trial could hurt the district, its families, and even Robbins and Hasan.
"Although we would have valued the opportunity to finally share an important, untold story in the courtroom, we recognize that in this case, a lengthy, costly trial would benefit no one," he said.
The settlement awaits the approval this week of U.S. District Judge Jan E. DuBois, who could make permanent his injunction barring the district from secretly tracking students.
Robbins' mother, Holly, said she was glad the case was over.
"I'm pleased with the outcome," she said from her Penn Valley home Monday night. "And I'm pleased that we were able to solve the problem and turn the cameras off, and that they put new policies into place."