The city of New York has reportedly agreed to settle a lawsuit alleging that its police officers have made false arrests during an Occupy Wall Street protest. The lawsuit contends that the police officers arrested several participants of the Occupy Wall Street demonstration on New Year's Day two years ago.

The terms of the accord would result to an awarding of $20,000 apiece to twelve plaintiffs, and $5,000 apiece to two other plaintiffs. Moreover, the city has agreed to shell out $333,000 to cover the legal costs.

"In this case and many others we have seen that the police do not understand the rights afforded individuals under the Constitution, especially with respect to expressive speech activity. Our hope is that this is the starting point for police retraining," lead lawyer Wylie Stecklow on behalf of the plaintiffs said about the case.

Attorney Andrew Lucas, who represents the city, said about the accord, "(The lawsuit involved) a fast-evolving, complicated policing situation. Settlement was in all parties' best interest."

The lawsuit arose from an incident following a turbulent evening at at Zucotti Park, where hundreds of protesters had then gathered in protest over the social and economic inequality, corruption, greed and the undue influence of corporations, particularly those in Wall Street, on the federal government, The New York Times said. Around 200 protesters had marched to the East Village after police officers have cleared Zucotti Park. A large number of officers on foot and in vehicles allegedly accompanied the protesters. According to the plaintiffs, the police officers stopped them at the corner of Second Avenue and 13th Street, and ordered for the group to disperse and then made the arrests on disorderly conduct charges. A UStream video appeared to have supported the plaintiffs' claims. The office of the Manhattan district attorney purportedly declined to prosecute the protesters.