The club and players released a joint statement on Wednesday night, confirming the settlement after two days of mediation this week.
The statement specified the settlement was reached "without determination of any parties' allegations".
"Hawthorn accepts that the allegations were made in good faith, and has heard, respects, and accepts that they represent their truths," part of the statement said.
"Hawthorn is sorry and apologises that the former players, partners, and their families, in either pursuing a football career, or in supporting such a person, experienced ongoing hurt and distress in their time at the Club."
The settlement brings to an end a scandal that has lasted more than two years.
Racism allegations against the club and its former coach Alastair Clarkson, his former assistant Chris Fagan and former welfare manager Jason Burt were first aired publicly in September 2022.
Clarkson, Fagan and Burt have all strenuously denied any wrongdoing since then, while an AFL investigation found no adverse findings against the trio in May last year.
Cyril Rioli was the lead applicant in the claim lodged against Hawthorn in the Federal Court. (Julian Smith/AAP PHOTOS)
AFL premiership star Cyril Rioli was the lead applicant in a statement of claim lodged in the Federal Court in July alongside his wife Shannyn Ah Sam-Rioli, former players Carl Peterson and Jermaine Miller-Lewis, his partner Montanah-Rae Lewis, and Hawthorn's former Indigenous liaison officer Leon Egan.
The claim included allegations of unlawful discrimination, including family separations and pressuring a pregnancy termination.
"Hawthorn and the former players, partners, and their families have chosen to settle the Federal Court proceeding, without determination of any parties' allegations, in the best interests of everyone," the statement said.
"Hawthorn and the former players, partners, and their families wish to record their thanks to Kate Eastman SC and Mick Gooda, who mediated this proceeding, for the assistance they provided the parties in being able to reach a resolution of this litigation."
Hawthorn have also committed to working with the former players and their families and welcoming them back to the club "in the hope that they will feel able to return to the Hawthorn Football Club".
The statement also declared: "Hawthorn remains committed to providing a safe environment for First Nations peoples and the elimination of all forms of racial discrimination.
"No person should suffer to pursue a career in football.
"By the former players, partners, and their families sharing their truths and raising their allegations, this has provided valuable learnings for the Club and has greatly assisted the Club in improving its processes, education and the care it provides to each First Nations player and their support persons.
"The Club thanks the former players, partners, and their families for their courage in providing this guidance."
