The monetary agreement in the settlement was not disclosed for confidentiality reasons.
"Dr. Dao has become the unintended champion for the adoption of changes which will certainly help improve the lives of literally millions of travelers," his lawyer, Thomas A. Demetrio, wrote in a statement.
Dao was dragged from a United Airlines flight earlier this month, when he was forced to get off the flight to make room for crew members who were needed in another city. Video of law enforcement officers pulling him down the aisle with a bloodied face went viral across the internet, sparking outrage against the airline. His lawyer subsequently said he had been hospitalized as a result of the removal, and suffered several broken bones and a concussion.
His attorney, who slammed the airline in a lengthy news conference two weeks ago, praised United CEO Oscar Munoz Thursday for taking responsibility for the incident and making subsequent policy changes.
"Mr. Munoz said he was going to do the right thing and he has. In addition, United has taken full responsibility for what happened on Flight 3411, without attempting to blame others, including the City of Chicago. For this acceptance of corporate accountability, United is to be applauded," Demetrio wrote in the statement.
In an interview with NBC News Thursday, Munoz said the airline was introducing new policies, including a prohibition on using law enforcement to remove passengers and reducing overbooking. "We breached public trust, and it's a serious breach," he said.