The PSNI has apologised to the family of a 28-year-old man murdered by the Loyalist Volunteer Force in 1998 for "inadequacies" in the investigation into his death.
Undisclosed damages also form part of a settlement announced in an action brought by the mother of Fergal McCusker, her lawyer said.
Mr McCusker was shot dead by the LVF in Maghera, Co Derry, as he made his way home from a night out in January 1998.
He had just returned to Northern Ireland from the United States a short time before he was abducted and killed.
No-one has ever been prosecuted for his murder.
His family have held concerns about the Royal Ulster Constabulary investigation and the potential involvement of state agents.
An inquest into Mr McCusker's killing was halted in 2024 amid issues around information being withheld on grounds of security.
Mr McCusker's mother, Christina, sued the police for alleged negligence and misfeasance in public office.
In court today it was confirmed that negotiations have led to a settlement in her action against the Police Service of Northern Ireland.
Counsel for Ms McCusker, Des Fahy KC, read out an agreed statement part of the resolution.
"The PSNI does not admit liability but recognises that aspects of the investigation fell below expected standards," Mr Fahy said.
"The PSNI wishes to apologise to the McCusker family for the inadequacies in the RUC investigation."
Police also acknowledged both the deep and lasting grief suffered by the family, and how the shortcomings had caused additional distress.
Mr Justice Kevin Rooney was told the force "affirms its commitment to learning from such cases in order to strengthen public confidence in the justice system".
Mr Fahey added: "The PSNI recognises that reconciliation is an ongoing societal process and affirms its broader institutional responsibility to uphold the values of fairness, transparency and accountability in its work."
Commending both sides for reaching a settlement, the judge described it as an example of how civil claims can help bring closure in such tragic cases.
Ms McCusker’s solicitor, Padraig Ó Muirigh, said undisclosed damages form part of the resolution.
"I can confirm that the settlement is significant and our client is satisfied with the outcome of this litigation," he said.
"The McCusker family have fought tirelessly to expose the inadequacies in the police investigation in the 28 years since his death.
"Christina McCusker has been treated disgracefully by those who were tasked to investigate her son’s murder.
"She should not have been placed in the position of having to pursue lengthy and protracted legal proceedings to get to this point."
Speaking on RTÉ's News at One, Mr Ó Muirigh said that this is not the end of the road for the McCusker family.
"Civil actions have their limitations. It's important that we have today's acknowledgement by the PSNI that there were shortcomings.
"But what the family want is the full truth," he said.
Mr Ó Muirigh added: "They've had long-held concerns that state agents were involved in this murder.
"They had hoped that their inquest would give them more information than to listen to that and the failings around it.
"But that inquest was halted due to the Legacy Act in April 2024 and has not reconvened since.
"In fact, the British Secretary of State has refused a public inquiry even in the corner had written to him requesting that.
"So, they're in a wee bit of a limbo in terms of investigation.
"They have no faith in the current structures, but the campaign goes on...Today isn't the end, but it's an important stepping stone along the way."
