The matter ended in February and a conference in March has been vacated because the claim was discontinued.
The family of Clare Nowland said the lawsuit ended on confidential terms.
"The estate and Nowland family will not be making any further comments at this time in view of the ongoing criminal proceedings," a statement from solicitor Sam Tierney read on Thursday.
Senior Constable Kristian White is due to be arraigned on manslaughter charges before the NSW Supreme Court in April after allegedly tasering the 95-year-old in an aged care home at Cooma in southern NSW in May.
Mrs Nowland was repeatedly asked to drop a serrated knife she was holding before she was tasered, but she said "no" or did not respond, court documents from the criminal proceedings say.
White confronted her with his Taser drawn and told her to stop moving before allegedly saying "nah bugger it" and triggered the weapon.
Police allege Sen Const White's actions were "grossly disproportionate" and constituted an excessive use of force considering the woman's age and frailty.
She spent a week in hospital with critical injuries including a fractured skull before she died.
Attorney-General Michael Daley has been contacted for comment.