Reed was killed. The incident followed a traffic stop where Reed fired his gun first, injuring an officer.
The high-profile case occurred eight months ago, and the City of Chicago has already reached an undisclosed settlement with Reed's mother.
"It's unusual for a case to come before the court and settle so quickly," said Ald. Chris Taliaferro, who chairs the city council's police and fire committee.
Taliaferro has concerns that the case was settled too hastily, so does Ald. Matt O'Shea. His 19th Ward is the home to many police officers.
READ MORE | Chicago police officers fired about 96 times over 41 seconds, killing Dexter Reed: VIDEO
"It's important to point out, a police officer was shot in this incident, police officer who has had multiple surgeries on the injuries he suffered from that incident, and to rush to a settlement," O'Shea said.
O'Shea says a quick settlement sends the wrong message to police officers.
"It says it's open season to sue the police department and sue police officers, making what is an extremely dangerous job that much harder," O'Shea said.
In the lawsuit against the city and five officers, Reed's family claims that the 26-year-old's death was due to what they called the Chicago Police Department's longstanding practice of unlawful traffic stops.
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After the Civilian Office of Police Accountability released the police video of the incident, COPA Chief Administrator Andrea Kersten publicly questioned whether the officers lied about the stop. Taliaferro says there must be more unknown facts to lead to a quick settlement.
"I think the most important thing is finding out why the city settled, and what are those facts that they believe if it went before a jury, that the jury would rule against the city," Taliaferro said.
Taliaferro says if the facts remain as they are, he doubts that the city council will approve the settlement.
The city's law department nor attorneys for the Reed family would comment.
The finance committee and the full city council must approve settlements over $100,000. This case will likely be quite a bit more than that. The city council has 75 days from the date of the settlement to approve it.