The lawsuit is against XL Foods Inc., which operated a meat-packing plant in southern Alberta during the tainted beef recall in 2012.
Rick Mallett, a lawyer for the Edmonton law firm behind the class action, said the settlement is to cover refunds to consumers for products that were recalled.
He said the proposed $1-million settlement, plus other costs, is to go before a judge early next year for approval.
"The parties have reached a settlement on beef refund claims subject to approval of the court," Mallett said Tuesday following a hearing in Court of Queen's Bench.