The family of a man killed in a barrage of gunfire during a SWAT raid at a home southwest of Tucson has settled a lawsuit with four police agencies involved in the operation.

The $3.4 million settlement with the family of Jose Guerena will end a two-year legal battle between his wife, Vanessa, and Pima County.

The settlement includes Marana, Oro Valley and Sahuarita, which had officers on the SWAT team, officials confirmed on Thursday.

Guerena, 26, was shot and killed by SWAT team members on May 5, 2011, when they raided his house.

The former Marine had been asleep after working a night shift and was awakened by his wife, who thought intruders were in the yard. He was holding an AR-15 rifle when he was shot.

A spokeswoman for the Pima County Sheriff’s Department disagreed with the decision to settle, but hinted a prolonged trial could wind up costing taxpayers even more.

“The Pima County Sheriff’s Department strongly believes the events of May 5, 2011, were unfortunate and tragic, but the officers performed that day in accordance with their training and nationally recognized standards,” Deputy Tracy Suitt wrote.

“However, legal advisers and insurers recognize the unpredictable resolution of disputes at trial regarding police conduct and even well-accepted police tactics. As a result, well-established business and insurance principles call for compromise and the resolution of disputed cases to mitigate risk and avoid the expense of a trial.”

Pima County Administrator Chuck Huckelberry called the agreement a “calculated risk-management settlement.”

The settlement is not an admission of any wrongdoing, Huckelberry said....