Look at it this way - settlements are negotiated, and you can negotiate anything you like. There's no law or precedent that says the DOJ can't do this.

I can see this being a useful way to resolve a dispute or solve a problem in an informal way. As we've all seen, though, the flexibility makes it possible for politically-biased manipulation of the DOJ in order to "fund" favored groups.

And remember, to SJWs, this is all "justice".