Attorneys representing 31-year-old Margarita Perez say surveillance video shows the woman preparing to hang herself.
The lawsuit claims Perez was hanging from a second-story railing for 26 minutes before the jail staff noticed.
Attorneys say the loss of oxygen to her brain left Perez with a permanent brain injury, paralyzing her from the neck down.
The city of Pasadena responded to the settlement, calling the events "extremely tragic" and says the jail has taken steps to help prevent suicides.
Safety enhancements include body-worn cameras, ongoing suicide crisis and prevention courses, rescue training, and in-house protocol drills, among other efforts.
If you or someone you know needs help, do not hesitate to call the National Suicide Prevention Lifeline at (800) 273-8255.