Ms. Woodward, convicted of manslaughter for the death of an 8-month-old baby in her care, was sued in federal court last year by the parents of Matthew Eappen.
The settlement, reached before the case was to go to trial, ensures that Ms. Woodward "does not profit from the killing of their 8-month-old baby," the Eappens' lawyer said this morning.
Sunil and Deborah Eappen filed a wrongful death suit against their former au pair after the Supreme Judicial Court upheld a judge's decision to reduce Woodward's conviction to manslaughter and free her on time served.
A jury had earlier convicted Woodward of second-degree murder in the death of the eight-month-old baby.
A statement from the attorneys does not indicate whether any money is involved in the settlement. And there is no immediate word on how the settlement would be enforced in England, where Woodward now lives.