Officer Edward Yerke was accused of fatally shooting Kenneth Elrod along with a friend in April 2006.
Elrod and his friend had been in a fight with the officer in a West Side bar. All three men left.
Police say Elrod pulled a gun on Yerke at a stop light and Yerke fatally shot Elrod and his friend.
Yerke was cleared of any wrongdoing in the shooting, but Elrod's family sued. Chicago police say the fatal shooting was justified but the jury disagreed.