But it has nothing to do with the 2014 killing, for which he was never indicted.
He was fired for lying on his job application.
As part of the deal, the city made no admission of wrongdoing in the 12-year-old black boy's fatal shooting by a white police officer in November 2014.
The city's claim comes two months after a grand jury failed to indict the officers who shot 12-year-old Rice as he played with a toy gun in a park.
Prosecutors have announced that the police officers who fatally shot the 12-year-old boy as he played with a toy gun will not be charged with murder.
Officer Timothy Loehmann opened fire on the sixth grader within two seconds of pulling up to the spot where Rice was playing with a pellet gun in a park.
An attorney for Rice’s family say a new report that includes images from two surveillance cameras contains “editorial comments that attempt to make excuses for the officers."
This is the third such report that the Cuyahoga County prosecutor has released as a grand jury considers whether to press charges against Officer Timothy Loehmann — and Rice’s family is not happy about it.
Cleveland police said previously that officer Timothy Loehmann warned Rice three times to raise his hands, but the results of an investigation released this week cast doubt on that claim.
The ruling issued Thursday by a Cleveland municipal court judge is largely symbolic because he can't order prosecutors to pursue charges in the case.
A court document filed by the city says the 12-year-old did not "exercise due care to avoid injury" during his fatal encounter with police.
During a job hunt that last more than a year, Officer Timothy Loehmann was rejected from multiple Cleveland area police departments.