Attorneys representing 31-year-old Margarita Perez say surveillance video shows the woman preparing to hang herself.
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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.
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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.
Calls to suicide and help hotline in Los Angeles increase 8,000 percent due to coronavirus