The Chicago City Council on Wednesday approved a $16.5 million settlement to a federal class-action civil rights lawsuit that accused the Chicago Police Department of abuse. Council members voted 46 to 1 to approve the settlement, under which more than 500,000 people could be eligible for reimbursement. The lawsuit was filed in 2004 and claimed an “institutionalized system of police torture.” It alleged arrests without warrants and people shackled to walls or benches. It said people were deprived of food and water, given few chances to go to a bathroom and had no bedding. The city will pay $15 million, and an insurer will pay for the remainder of the settlement, said Mara Georges, a lawyer for the City of Chicago, adding that plaintiffs originally sought $100 million. Court documents show that the Chicago civil rights law firm Loevy & Loevy could receive up to $5 million of the settlement fund in legal fees. Cash awards under the settlement are to be $90 to $3,000.