Huskins was drugged, kidnapped and raped in 2015. Her boyfriend was also drugged.
After Huskins turned up days later in Huntington Beach, Vallejo police called the kidnapping a "hoax" and a "waste of resources."
Matthew Muller later pleaded guilty to the federal kidnapping case. He's now serving a 40-year prison sentence.
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A federal judge last year rejected an effort by the city of Vallejo to toss out the lawsuit.
KGO spoke to the family, and they confirmed that the settlement is for $2.5 million.