The University of California has agreed to pay nearly $1 million to settle a lawsuit filed by demonstrators who were pepper-sprayed in the face during an Occupy protest, an incident that became a defining moment in the short-lived movement against economic inequality.

Images of a police officer casually spraying the faces of seated, nonviolent protesters became a rallying symbol, and the Nov. 18, 2011, incident on the Davis campus prompted national outrage. Online videos shot by witnesses went viral. The demonstrators had been protesting steep tuition hikes and police brutality.

The university and the plaintiffs, represented by the American Civil Liberties Union, filed the preliminary settlement Wednesday. The agreement is subject to the approval of a federal judge.

"The settlement should be a wake-up call for other universities and police departments," said Michael Risher, staff attorney with the ACLU of Northern California. "If the First Amendment means anything, it's that you should be able to demonstrate without being afraid of police violence."

Under the proposal, the university will pay $30,000 to each of 21 plaintiffs named in the complaint and $250,000 for their attorneys. The university also will set aside $100,000 to pay others who can prove they were arrested or pepper-sprayed.

"It was felt that the proposed settlement was in the best interest of the university," said UC spokesman Steve Montiel.

Plaintiff Fatima Sbeih said she suffered panic attacks and nightmares after she was pepper-sprayed.

"I want to make sure that nothing like this happens again," Sbeih said in a statement.

A task force report released in April blamed the incident on poor communication and planning and concluded the situation could have been prevented.

Last week, Yolo County prosecutors said the officers who fired the pepper-spray won't face criminal charges because there is not enough evidence to prove the use of force was illegal.