The residents and homeowners brought a case in 2008 against more than 30 Immigration and Customs Enforcement officers accused of a series of pre-dawn raids.
The Center for Constitutional Rights helped represent the residents. It said Monday federal agents can't "lie or force their way into people's homes in the middle of the night, point guns at children and use force" without a warrant or consent.
U.S. permanent resident Ana Galindo says ICE agents barged into her Paterson home, refused to accept her state driver's license as valid identification and pointed a gun at her 9-year-old son.
ICE officials haven't responded to a request for comment.