Several groups sued the federal government in 2007 over the checks that sometimes required FBI officials to manually review files.
Groups such as the American Civil Liberties Union and National Immigration Law Center say the settlement requires authorities to process hundreds of backlogged applications in the greater Los Angeles area within six months.
FBI officials have said the agency has reduced the backlog and now handles nearly all name checks in 30 days.
The settlement was approved in U.S. District Court in Santa Ana on Friday.
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